How is the BIK calculated?
The catalogue price is always calculated INCLUDING the actual VAT you pay, all options and accessories, EXCLUDING discount.
The CO₂ rate is calculated based on the CO₂ emission of the vehicle.
- For electric vehicles, there’s always a base rate of 4%.
- For diesel vehicles, there’s a base rate of 5.5% for a CO₂ emission of 65 g/km.
- For petrol, LPG and CNG vehicles, there’s a base rate of 5.5% for a CO₂ emission of 78 g/km.
The CO₂ rate is calculated by subtracting the reference values for diesel or petrol from the vehicle’s CO₂ emissions.
For diesel, petrol, LPG and CNG vehicles, 0.1% is added for every extra g/km and 0.1% is subtracted for every g/km less. The maximum CO₂ rate is 18%. The minimum CO₂ rate is 4%, like for cars whose calculations have a negative value, for instance.
The catalogue price is multiplied by the CO₂ rate. Afterwards, the amount is multiplied by the coefficient 6/7.
That’s because 6/7 of the BIK amount is the employee’s responsibility and 1/7 is the employer’s responsibility.
The final number in the calculation is the age percentage. This percentage takes the amount of time that’s passed since the vehicle’s registration into account. Every year, the percentage goes down by 6%.
The maximum decrease is 30%. The age percentage needs to be considered for new vehicles (0-12 months old).
A benefit in kind, such as a company vehicle, is an advantage granted to an employee or business manager by their employer. Such benefits are considered part of professional income and are therefore taxable.
The minimum BIK which you will be taxed for in the 2025 income year, is € 1,650. This amount is indexed annually.
If you contribute towards the cost of your company vehicle, or if you reimburse part of that cost, this is considered a personal contribution.
This personal contribution can be deducted from the benefit-in-kind amount.
Questions about the VAA or other tax topics?
