Changes concerning the (electric) company car
In 2024, a number of things changed regarding company cars. We have set out the relevant points for you below.
Increase in mileage allowance
The tax-free mileage allowance for business travel rises from EUR 0.21 in 2023 to EUR 0.23 in 2024. This increase is intended as an incentive for more efficient and sustainable travel.
End of the entrepreneur exemption for vans
Not much changes for entrepreneurs with a van in 2024, but from 1 January 2025 the entrepreneur exemption for vans will no longer apply. From that date, a different scheme will apply, under which the amount of tax owed is determined by CO2 emissions. Company vans will then be subject to the same BPM (private motor vehicle and motorcycle tax) rate as passenger cars.
End of the “grey licence plate” scheme
The grey-plate scheme, better known as the BPM exemption, will be abolished in 2026. To achieve this, a start will be made after 2024 so that the scheme can eventually be phased out gradually. From 2025, BPM will be calculated based on the company vehicle’s CO2 emissions, at a rate of EUR 66.91 per gram of CO2 emitted. The Dutch government expects this measure to generate around EUR 2.2 billion in tax revenue in total. Company cars running on fossil fuels are expected to become 38% more expensive from 2025 as a result. Entrepreneurs who purchased their company car before 2025 can continue to benefit from the BPM exemption.
Reduced additional taxable benefit for electric cars
Under the Tax Measures (Climate Agreement) Act, the discount on the additional taxable benefit-in-kind is being phased down to 0% by 2026. The discount remains 16% in 2024, up to a maximum amount of EUR 30,000. Above that amount of the list price, the standard benefit-in-kind rate of 22% applies, as it does for all CO2-emitting cars.
Subsidy Scheme for Electric Passenger Cars for Private Individuals (SEPP)
An employee who purchases a new or used electric car as a private individual may qualify for a subsidy. The Subsidy Scheme for Electric Passenger Cars for Private Individuals (SEPP) also applies to individuals who wish to privately lease an electric car. A maximum annual budget applies to the subsidy each year. An employee can receive it once, provided the applicable conditions are met. For 2024, the subsidy amount remains unchanged from 2023: EUR 2,950 for a new electric car and EUR 2,000 for a used electric car.
Subsidy for Zero-Emission Company Vehicles (SEBA)
The Subsidy Scheme for Zero-Emission Company Vehicles (SEBA) appears set to remain unchanged in 2024. Small businesses can benefit from a subsidy of up to 12% of the sale price of the company vehicle, up to a maximum of EUR 5,000. This subsidy is intended to encourage small businesses to invest in zero-emission company vehicles.
CO2 emissions
From 1 July 2024, employers with more than 100 employees must report their CO2 emissions. For more information, see: mandatory CO2 reporting for employers (in Dutch). There are various ways for employers to reduce their CO2 emissions.
1. An employer can choose to let employees work from home part of the time. Hybrid working can significantly reduce CO2 emissions.
2. An employer can opt for Mobility as a Service (MaaS). Instead of a company car, the employer then offers a mobility budget. The unused part of that budget can be paid out, which makes it more attractive for the employee to take a bike or public transport instead of a (privately leased) car. An app can be used to indicate which mode of transport is most sustainable and efficient for a specific trip. Such an app is especially beneficial for employers, since the number of kilometres travelled per mode of transport is tracked automatically, reducing the administrative burden of CO2 reporting.
Do you have questions about these changes? Please feel free to contact our employment lawyers.
