Additional levy for non-electric company cars

From 1 January 2027, an additional levy will be introduced for non-electric company cars made available to employees. This levy amounts to 12% of the catalogue value annually. For cars older than 25 years, the taxable base is the market value, unlike the standard private use tax (‘bijtelling’), which switches to market value after 15 years. The levy is payable by the employer.

This levy is in addition to the private use tax for employees and makes it highly unattractive from a tax perspective for employers to provide a non-electric car to their employees. It also applies to hybrid vehicles. Electric cars are exempt from this levy; however, other benefits associated with electric cars are gradually being reduced. For cars made available before 2027, a transitional period applies until September 2030.