Taxation

  • Which company car tax category applies to my vehicle?

    Do you use your business lease car for private trips of more than 500 kilometres per year?
    Then you have to deal with additional tax, also called benefit in kind.

    Additional tax is a percentage of the car’s fiscal value.
    The Dutch tax authorities add this amount to your gross salary.
    The percentage depends on the car’s CO₂ emissions.

    Additional tax for electric lease cars
    Do you drive a fully electric car?
    Then the additional tax rate is 18%.

    This 18% applies up to a fiscal value of €30,000.
    Is your lease car more expensive? Then you pay 22% additional tax on the amount above €30,000.

    Additional tax for non-electric cars
    Is your car not fully electric?
    Then the additional tax rate is 22%.

    Additional tax for youngtimers
    Different rules apply to youngtimers.
    Is your car older than 15 years? Then it is a youngtimer.

    In that case, you pay 35% additional tax based on the car’s current market value.

    On the website of the Dutch tax authorities, you can check which additional tax applies to your car.
    You can also see this on our website, per version. When you calculate your car, you will immediately see which additional tax category it falls under.

    Questions?
    Email: info@directlease.nl
    Telephone: 0541 - 571 710

  • Why Do I Pay Additional Tax (Bijtelling)?

    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

  • Do the options I choose affect the addition to income (bijtelling)?

    Yes, they can. The addition to income is calculated based on the car’s catalogue value, including all factory-installed options.

    Any extras added later by third parties (like the importer or dealer) are not included.

    Questions?
    Email: info@directlease.nl
    Phone: +31 541 571 710

  • How is my net addition to income (bijtelling) calculated?

    No need to grab a calculator, our website does it all for you. You can instantly see your net addition to income.

    Step 1:
    Click on the car you want to configure. Choose the color, packages and options. On the right side of the page, you’ll see our monthly costs table. No matter what options you pick, the lease price, fiscal value and net addition to income update automatically.

    Step 2:
    Click on “term”? The table will expand.
    Enter your annual income and any personal contribution – this will give you an even more accurate net calculation.

    Please note:
    The calculation does not take into account income-related tax credits (heffingskortingen). This means your actual addition to income may end up slightly higher.

    Questions?
    Email: info@directlease.nl
    Phone: +31 541 571 710

  • For a used car, is the addition to income (bijtelling) based on the current value or the original list price?

    The addition to income is always calculated based on the car’s original catalogue value. The current (used) value does not apply.

    Questions?
    Email: info@directlease.nl
    Phone: +31 541 571 710

  • Is the addition to income (bijtelling) based on the catalogue value including or excluding BPM?

    The addition to income is calculated based on the catalogue value including both BPM and VAT.

    Questions?
    Email: info@directlease.nl
    Phone: +31 541 571 710

  • What is the pseudo final levy?

    From 1 January 2027, employers will have to deal with the pseudo final levy.
    In short, an extra tax.

    We understand that this raises questions.
    That’s why we’ve listed the 10 most frequently asked questions below, with clear answers.

    1. What is the pseudo final levy?

    The pseudo final levy is an additional tax for employers.

    You pay this tax if, from 1 January 2027, you make a fossil-fuel lease car available to an employee. This includes petrol, diesel and hybrid cars that are also used privately.

    The levy is 12 percent of the catalogue value per year, including VAT and BPM.

    Good to know:

    • The pseudo final levy is separate from the employee’s benefit-in-kind tax.
    • You are not allowed to pass these costs on to the employee.
       

    2. Who has to pay the pseudo final levy?

    The levy applies to:

    • Employers who provide a fossil-fuel lease car for private use. Commuting counts as private use.
    • Directors and major shareholders who drive a lease car through their private limited company.
    • The levy does not apply to:
    • Self-employed professionals and sole traders, as they do not pay payroll tax.
       

    3. What counts as private use?

    The tax authorities apply a broad definition of private use. This includes:

    • Private trips in addition to business mileage.
    • Commuting, even if you stay below 500 private kilometres per year.
    • If the car is used exclusively for business, with no private trips and no commuting, the levy does not apply.
       

    4. Which vehicles does the levy apply to?

    The pseudo final levy applies only to:

    • Passenger cars that are not fully emission-free, such as petrol, diesel and hybrid vehicles.
    • The levy does not apply to:
    • Fully electric or hydrogen-powered cars.
    • Cars used exclusively for business purposes.
    • Vans, trucks and similar vehicles.
       

    5. Is there a transitional arrangement?

    Yes. Lease cars that were already made available to an employee before 1 January 2027 are exempt until 17 September 2030.

    Please note:

    • After this date, the levy will apply, unless the car is fully electric.
    • If the car changes employer during the transitional period, the exemption expires and the levy may apply immediately.
       

    6. How is the levy calculated and when do you report it?

    The levy amounts to:

    • 12 percent per year, or 1 percent per month, of the catalogue value.
    • The levy is calculated per month.
    • Just one day of private use in a month is enough to trigger the levy for the entire month.
    • The pseudo final levy is usually reported in the second tax return period of the following year.
       

    7. Can the levy be passed on to the employee?

    No. The pseudo final levy is entirely the employer’s responsibility. You are not allowed to:

    • Charge it to the employee.
    • Include it in a higher personal contribution.
       

    8. What if a lease car is only available for a short time?

    The levy still applies.

    • If the car is available for private use for just one day in a month, the levy applies for the whole month.
    • This also applies to replacement cars or holiday cars, as long as they are not fully electric.
       

    9. How can you reduce the impact of the pseudo final levy?

    You can limit the impact by:

    • Switching to fully electric lease cars.
    • Making use of the transitional arrangement for contracts starting before 2027.
    • Reviewing your mobility policy, for example by:
    • Using mobility budgets.
    • Offering electric shared cars for business trips without private use.

    Please note: if a mobility budget is effectively used to finance a company car, this may still be seen as providing a lease car. In that case, the levy may still apply. This topic is currently under discussion with the tax authorities.
     

    10. Why has the pseudo final levy been introduced?

    The government wants to encourage employers to choose emission-free mobility. Fossil-fuel lease cars become less attractive, while electric cars become more appealing. The goal is to reduce CO₂ emissions.