If you are allowed to lease a company car and use it for private purposes (more than 500 kilometers per year), you are subject to a tax addition known in the Netherlands as “bijtelling.” This is a financial contribution added to your taxable income because you are receiving a benefit from your employer in the form of a car.
What is bijtelling?
Bijtelling is the amount you pay in taxes for using a company car privately. The Dutch Tax Authorities consider this a form of income in kind, which means it’s taxed similarly to your salary.
How does it work?
The bijtelling is calculated as a percentage of the car’s fiscal value (catalogue price including VAT and BPM). This percentage depends on the CO₂ emissions of the vehicle.
Example calculation:
Suppose you drive a car with a fiscal value of €30,000 and a bijtelling rate of 22%.
Your annual addition is then €6,600.
Divided over twelve months, this results in a gross monthly addition of €550.
If your annual gross salary is below €68,508, the applicable income tax rate is 37.35%.
In this case, your net bijtelling would be 37.35% of €550, which is approximately €205 per month.
Note:
If you drive less than 500 kilometers privately per year, you may be exempt from bijtelling, provided you can prove this with an accurate trip log.
Questions?
Email: info@directlease.nl
Telephone: 0541 - 571 710