Due to the uncertainty around the practical handling of the proposed legislation, it is still too early to draw any final conclusions in terms of the effects. If the proposed legislation is adopted in its current form, there will be a change in taxation value of all cars provided to employees after 1st February.
As recalculation is already being performed according to the Registration Tax Act, the proposed legislation will not have any effect on companies’ monthly leasing payments, hence only affecting taxation for the employees with access to a company car after 1st February.
For companies that have already ordered or are planning to order cars to be delivered in 2020, the proposed legislation in its current form will imply that cars registered after 1st February will need to have their taxation value checked while being recalculated according to the Registration Tax Act. The proposal will result in a higher taxation of cars registered after 1st February 2020 than a similar car registered before this date.
Unfortunately, at LeasePlan we often experience a slow-down in the leasing market when proposals that affect vehicle registration fees and taxation appear, primarily because companies and drivers are uncertain about the effects. At the same time, in our experience, the market can counterbalance the slow-down just as quickly as proposals become fully adopted and the effects are better known.
There is also a risk that the proposed legislation could slow down business development in an unfavourable way and result in a decrease to investment.
Our recommendation therefore, is that our partners proceed with their investments as planned. Once the proposed legislation is adopted in full and we know the effects, we can start analysing the possible changes in terms of fleet composition and future investment.
At LeasePlan we monitor the situation closely, and as soon as we know more about the impact of the proposed legislation, we will of course reach out to all of our customers.