‘False' hybrid company vehicles: characteristics of the corresponding vehicle determined

With the determination of the characteristics of a corresponding vehicle, a final step has been taken to calculate the taxable benefit of the 'false' hybrid company cars as from 1 January 2020.

What will change?

As from 1 January 2020, the CO2 emissions to be taken into account for the calculation of the taxable benefit of a 'false' hybrid company car purchased, leased or rented as from 1 January 2018 are equal to:

• the CO2 emissions of the corresponding vehicle equipped with an engine using only the same fuel (the non-hybrid version of the vehicle);
• or, if no corresponding vehicle exists, the emission rate of the ‘false’ hybrid vehicle multiplied by 2.5.

As a result of this change, the taxable benefit of the 'false' hybrid company cars concerned will increase as from 1 January 2020.

For more details on the concept of 'false' hybrid company car and the change in the calculation of the taxable benefit, we refer to our Infoflash of 17 July 2019.  

Corresponding vehicle

The Royal Decree of 5 September 2019 lays down the characteristics of the corresponding vehicle. The technical information mentioned on the vehicle's certificate of conformity (hereinafter referred to as COC) is used as a basis for this.

In comparison to the 'false' hybrid company car, a corresponding vehicle must be:

• equipped with an engine using only the same fuel as the 'false' hybrid vehicle (COC, section No 26);
• be of the same make (COC, section No. 0.1);
• be of the same model (COC, section No. 0.2.1);
• have the same bodywork (COC, section No. 38).

Finally, the ratio between its power and the power of the 'false' hybrid company vehicle, both expressed in kW (COC, section No. 27.1), must be closest to 1, provided that this result is between 0.75 and 1.25.

List of corresponding vehicles

When a 'false' hybrid car is placed on the market, car manufacturers or car importers are obliged to determine whether a corresponding vehicle exists and must communicate this information to the FPS Finance. The list of 'false' hybrid cars and their corresponding vehicles will be published on the website of the FPS Finance.

For 'false' hybrid vehicles put on the market before 1 January 2020, car manufacturers or importers must provide the FPS Finance with information on the corresponding vehicles by 20 April 2020 at the latest. 

What do you need to do?

If you make 'false' hybrid company cars available to employees or company managers, you must check whether or not there is a so-called matching vehicle. If this is the case, please look up the CO2 rate of this vehicle. Let your leasing company or garage assist you with this. You will also be able to consult the list of 'false' hybrid cars and their corresponding vehicles on the website of the FPS Finance upon publication. It is not yet known when the FPS Finance will publish this list.

Customer of Partena Professional? In that case you will be contacted to provide your Payroll Consultant with the required information about the 'false' hybrids in your fleet and corresponding vehicles (if these exist). With this information, Partena Professional can calculate the exact taxable benefit of these 'false' hybrid company cars.

Sources: Corporation Tax Reform Act of 25 December 2017, Belgian Official Gazette, 29 December 2017; Act of 2 May 2019 containing various tax provisions 2019-I., Belgian Official Gazette of 15 May 2019; Circular 2019/C/56 on the benefits in kind for the personal use of a 'false hybrid' made available free of charge, Royal Decree of 5 September 2019 amending Royal Decree/CIR 92 as regards the corresponding vehicle, Belgian Official Gazette of 17 September 2019.