Tax on electric lease cars set to rise to 20%
Industry bodies BOVAG and RAI Vereniging point to a higher tax addition on electric lease cars and a bigger employer levy on combustion-engine company cars.
The Dutch car industry expects to sell fewer new passenger cars next year. The industry bodies BOVAG and RAI Vereniging expect the bijtelling (the tax addition for private use of a company car) on electric lease cars to rise from 18% to 20%.
Employers will also pay somewhat more in pseudo-eindheffing, a levy on employers, for company cars with a combustion engine, including plug-in hybrids.
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bijtelling
The bijtelling is the taxable addition that an employee must include in their income when they use a company car privately. The added amount is a percentage of the car's list price, and that percentage depends on the car's type, such as whether it is fully electric, and is set by the government. It matters because it determines how much income tax people pay on a company car, which affects both lease decisions and car sales.
pseudo-eindheffing
The pseudo-eindheffing is a levy that employers pay on company cars with a combustion engine, including plug-in hybrids. It is charged to the employer rather than to the employee, and it forms part of the Dutch tax rules for company cars. It matters because it adds to the cost of providing combustion-engine company cars to staff.