Business gasoline or diesel car becomes expensive for employers
Employers who offer a fuel car to employees who also use it for private or commuting kilometers may have to dig into their pockets from January 1, 2027. The so-called pseudo final tax has been passed by the Lower House.
The pseudo final tax can be quite costly. Employers who provide a non-emission-free car registered to the company to employees will be fiscally reprimanded. The government much prefers the complete electrification of the business fleet. This reprimand can be quite painful. The announcement of the pseudo final tax led to resistance, including from the SGP, which submitted a request to scrap the measure. That amendment was rejected. Indeed: the pseudo final tax is coming.
This tax reprimand is not lenient. It amounts to no less than 12 percent of the list price for a car up to 25 years old. Only for cars older than 25 years, the tax is 12 percent of the current value (market value) of the car. This is considerably lower than the list price (new value).
A transitional arrangement applies to lease cars with a combustion engine that were offered to an employee before January 1, 2027. Transitional arrangements are temporary: from July 1, 2030, the extra tax also applies to these cars.
Important: the pseudo final tax only applies to employees who also use the fuel car registered to the employer for private purposes (more than 500 kilometers per year). They therefore pay additional tax. In many cases, the measure also applies to employers of employees who do not pay additional tax and therefore remain under the usual 500 private kilometers. Commuting is also considered private in this measure. Self-employed individuals who drive a youngtimer do not have to worry about the pseudo final tax. After all, they are not employees. Incidentally, a lot is also changing regarding the youngtimer scheme. You can read more about this here.
The Bovag is not enthusiastic about the pseudo final tax, partly because it combines too much hassle with a ‘minor climate effect’:
“Electrification in the business market is already progressing rapidly, and the final tax adds little to it. Those who are not yet ready to switch to an electric company car will massively say goodbye to that company car and switch to a private car with mileage allowance. In many cases, this will be an older fuel car. And that is bad news for the rejuvenation and therefore greening of the vehicle fleet,” writes the Bovag in a response.