Financial lease tax addition

The topic of financial lease tax addition is often misunderstood and therefore leads to many questions when choosing a company car. In this blog post, we delve deeper into financial lease tax addition: what is it, when do you pay it, and what are the rules for tax addition in 2023?

What is the tax addition for financial leases?

Financial lease is an easy way to purchase a delivery van, allowing you to spread the purchase price over several installments. In some cases, a taxable benefit is charged on the financial lease. If, as an entrepreneur, you purchase a company vehicle for the business and add it to the balance sheet, you can reclaim the VAT. Additionally, items such as insurance, road tax, maintenance, and fuel can also be paid through the company. As a result, the costs of the company car are deductible from the profit. As soon as you also use a company car privately and drive more than 500 kilometers privately with the vehicle, you will be subject to a taxable benefit. This essentially means that the costs you are initially allowed to deduct from the profit are partially adjusted.

Company car tax rules 2023

The taxable benefit is calculated using a percentage of the list price of the delivery van. The list price is the price paid at the factory. In 2023, there are two different percentages used to calculate the taxable benefit: 16% and 22%. The percentage depends on the CO2 emissions of the commercial vehicle, and these limits are recalculated every year.

If your company car was first registered before 2017 and the 25% addition applied to your company car at that time, this percentage continues to apply. In 2023, the reduced percentage of 16% applies only to hydrogen-powered company cars and company cars powered by integrated solar cells. For other zero-emission vans, the 16% addition applies only up to a list price of €30,000. For the portion above that, the addition of 22% applies. The reduced percentage is also valid for a period of 60 months, measured from the first day of the month following the month of first admission. The date of first admission is the date on which the company car is put into use for the first time, both in the Netherlands and abroad. After the 60 months have elapsed, the percentage will be recalculated based on the rules applicable at that time.

Is financial leasing possible without tax added?

Although most business financial lease contracts include a taxable benefit amount, it is also possible to enter into a lease contract without this benefit. As long as you use the company car solely for business purposes and drive less than 500 kilometers privately (and can prove this), you do not have to pay any taxable benefit.

Conclusion

You pay a financial lease addition when you drive a business car privately for more than 500 kilometers. Essentially, this means that the costs you are initially allowed to deduct from your profit are partially adjusted. The addition is calculated using a percentage of the list price of the company car; in 2023, this can be 16% or 22%, depending on the car's CO2 emissions. If you drive your company car for business purposes and do not want to pay an addition for this, it is important that you use the vehicle solely for business purposes.

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• Financial lease without annual figures
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