Tax reform 2022 on the benefit in kind of corporate vehicle

With the entry into force of the tax reform on 1 January 2022, a number of changes now impact the calculation of the benefit in kind on the company vehicle. 

The 2022 tax reform modifies the way benefits in kind are calculated for each employee who use a company car.

How is that going to happen?

The current tax regime for the BIK calculation is as follows:

**For CO2 emissions expressed as WLTP  (as of January 1, 2021).

This regime will continue to apply to:

Vehicles registered before 31/12/2021.
Vehicles for which a contract is signed before 1 January 2022 and vehicles registered before 1 January 2023
 

>> Note that the proof of the signed contract will be the order of the customer with the leasing company (offer signed for example) mentioning the date of order, the description of the car, as well as the information of the customer and the driver.

Starting January 1, 2022, intermediate emission thresholds and corresponding rates will be added to the BIK calculation.

100% electric vehicles will be divided into 2 categories according to the WLTP consumption in kWh/100km of the vehicle:

**For CO2 emissions expressed as WLTP (as of January 1, 2021).

This new regime will apply to:

• Any vehicle that was the subject of a contract signed with registration in 2022. In this case, the vehicle will be subject to the current regime (2017 - 2021) again in 2022, then to the new regime as of January 1, 2023.
• Vehicles registered between January 1, 2023 and December 31, 2024 and vehicles under contract signed before January 1, 2025 and registered by December 31, 2025. 

   

Finally, from January 2025, the rule is simplified into 2 categories and 3 tax rates for the calculation of the BIK with 100% electric zero-emission vehicles and other engines, as follows:

This next regime will apply to:

All vehicles registered from 1 January 2025, without a contract signed before 1 January 2025.

BIK Transition Summary:

Need support in this transition? Questions?

Contact your sales representative for more information.