CO2 contribution and Benefit in Kind

CO2 contribution

The employer has to pay a solidarity contribution for company cars that can also be used for private purposes. This so-called CO2 contribution is based on the car's CO2 emissions and energy label. A minimum amount always applies.

The CO2 contribution is calculated as follows:

[((CO2 emissions x €9) – 768 (petrol) or 600 (diesel) or 990 (LPG)/12] x index coefficient

The index coefficient and the minimum amount are indexed annually.The minimum amount is payable for zero-emission cars.

For 2023, the index coefficient is 1.5046 ; the minimum CO2 contribution is €31.34/month.

Benefit in kind

Providing a company car to an employee who can also use the car for private purposes is considered as a benefit in kind and therefore gives rise to tax at the employee's expense. If the employer makes a home charging station available and reimburses the electricity used for home charging, this does not lead to an increase in the benefit. In order to ensure that the reimbursement only applies to the company car, the home charging station must have a communication system that allows the employer to be informed of the amount of electricity used.

The benefit in kind is calculated as follows:

list value x CO2 coefficient x 6/7 x age percentage

A minimum amount always applies. The CO2 reference values and minimum benefit in kind are reviewed annually. The CO2 reference values for 2023 are 67 g/km for diesel cars and 82 g/km for gasoline cars, CNG and LPG. The minimum Benefit of All Nature for 2023 is €1,540/year.

**VAA ** CO2 reference values 2021: 84 g/km for diesel and 102 g/km for gasoline
CO2 reference values 2022: 75 g/km for diesel and 91 g/km for gasoline CO2 reference values 2023: 67 g/km for diesel and 82 g/km for gasoline

Min VAA 2021: EUR 1370 Min VAA 2022: 1400 EUR Min VAA 2023: 1540 EUR

**CO2 tax **Indexation coefficient 2021: 1.3222 Indexation coefficient 2022: 1.3525 Indexation coefficient 2023: 1.5046

Min CO2 tax 2021: EUR 27.54 Min CO2 tax 2022: EUR 28.17 Min CO2 tax 2023: EUR 31.34

The list value on which the calculation is based is the list price of the car and all its options, excluding any discounts and including the actual VAT paid.

The formula for the CO2 coefficient is as follows:

[5,5 + ((CO2-emission of the vehicle - CO2-reference)x0,1)]%

The CO2 coefficient is the difference between the reference emission levels the legislator provides annually and the CO2 emissions of the car in question. The basic CO2 coefficient is 5.5% and applies to the reference emission levels. This reference emission level is adjusted annually based on the average CO2 emissions of newly commissioned cars in the previous year. From 2022 onwards, the CO2 reference values can no longer increase compared to the previous year.

If the emissions exceed the reference emission level, the coefficient is increased by 0.1% per 1g/km up to a maximum of 18%. If the emissions are lower than the reference emission level, the coefficient is reduced by 0.1% per 1g/km down to a minimum of 4%. Zero-emission cars are subject to a 4% CO2 coefficient. For 2022, the reference emissions are 75 g/km for diesel cars and 91 g/km for gasoline cars, CNG and LPG.

The list price can be reduced by 6% from the second year with a maximum of 70%. In summary:

Decrease in percentages
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
70% (limit)

Calculation example

Diesel car, catalog value of € 30,000, CO2 emissions 105 g/km, age 13 months