Who is affected?
As an employer, you will pay an additional tax from 1 January 2027 if:
- A company car with an internal combustion engine is provided, namely cars with petrol, diesel or hybrid engines
- It is a fossil-fuel passenger car classified as an M1 vehicle (i.e. not lorries, vans, etc.). However, passenger minibuses classified as M1 vehicles are included
- The company car is made available for the first time on or after 1 January 2027
- The employee uses the company car for private purposes (for the purposes of this scheme, this includes commuting).
Please note:
- A director and major shareholder (DGA) who drives a company car via their private limited company (B.V.) will also be subject to this additional tax.
- This also applies to cars for which a ‘declaration of no private use of car’ has been requested.
How much is the tax?
The tax is per year:
- 12% of the list price of the car for cars up to and including 25 years old.
- 12% of the market value for cars over 25 years old.
For a car with a Dutch list price of €40,000, this therefore results in an additional charge to the employer of €4,800 per year (€40,000 × 12%). The final levy is in addition to the standard payroll tax and social security contributions.
As an employer, you pay the additional tax via the payroll tax return (pseudo-final levy). You may not pass this tax on to the employee.
As an employer, you must calculate the pseudo-final levy per calendar month and pay it no later than when submitting the return for the second payroll tax period of the following calendar year. However, payment may also be made during the calendar year.
Why do you need to take action now?
Lease contracts often have a term of four to five years. A contract you enter into today may run until after the transition period in 2030 and will then still be subject to the pseudo-final levy.
For non-electric cars made available before 1 January 2027, transitional law will apply temporarily until 17 September 2030. But after that, you will have to pay for these cars in any case. New contracts commencing after 31 December 2026 will be subject to the scheme immediately.
Transitional scheme
If, as an employer, you made a passenger car available to an employee before 2027, a transitional period applies until 17 September 2030. From 17 September 2030, the pseudo-final levy will apply to all cars that emit CO2 and are made available for private use.
Questions?
Of course, all advice is ultimately tailored to your specific situation, so please feel free to contact us without obligation to discuss the impact the (proposed) changes will have on your circumstances.