Agreement on reference CO2 emissions from commercial vehicles for 2024
March 2024 - At the end of January 2024, Finance Minister Vincent Van Peteghem reached an agreement within the federal regulation to determine the reference CO2 emissions for commercial vehicles. CO2 emissions are an important parameter to calculate the benefit in kind (VAA) for company cars. This reformed calculation method takes into account the total fleet of vehicles in our country, providing a correct and representative calculation.
New calculation method
The so-called benefit in kind (VAA) is calculated at a flat rate and depends on the catalogue value, CO2 emissions and age of the car. The CO2 emissions in the calculation formula are linked to the annual evolution of the average CO2 emissions of newly registered cars, the reference emissions. Without adjustment, the reference emissions would fall sharply due to the surge in electric cars. The taxable benefit would increase significantly as a result.
This has to do with the emission values used: emissions with laboratory tests (NEDC) or with tests on public roads (WLTP). Until now, only the (lower) NEDC values of cars were taken into account when determining reference CO2 emissions. But since 2021, newly registered cars with internal combustion engines only have a (higher) WLTP value and only 39% of cars - including electric ones - would be included in the calculation.
Therefore, starting with the 2024 revenue year, the emission values of all cars will be taken into account.
Those driving a company car on diesel or gasoline will thus see their monthly tax on private use rise less sharply than initially feared.
Taxable benefit full electric remains unchanged
The taxable benefit of an all-electric company car remains unchanged. Because they have no CO2 emissions, the calculation formula uses a fixed CO2 coefficient of 4%. However, there is always a minimum taxable benefit that is indexed annually. In 2024, this amounts to 1,600 euros, or about 133 euros per month.
Higher tax ceiling bike allowance and cheaper rail pass
In exchange for this tax gift to polluting drivers, the government encourages the use of bicycles and trains for commuting. This is done through:
· A higher tax ceiling (up to 3,500 euros) for the exempt bicycle allowance. Until now, this ceiling was 2,500 euro per calendar year. For your information, the maximum amount of 2,500 corresponded to 7,142 kilometres per year (assuming a maximum reimbursement of 35 euro cents). With 3,500 euros, this becomes 10,000 kilometres per year.
· A cheaper train pass for 100,000 employees. These are workers, active in the private sector, where the third-payer system does not apply. From now on, the Belgian state would pay 7.5% and the employer 71.8% of the price of the train season ticket. That means the employee still has to pay 20.7%.
This proposal has yet to be approved by the National Labor Council. So it remains to be seen when this arrangement will take effect.
