The Benefits of Having a Company Car

KPMG Meijburg & Co, the Netherlands comments on changes regarding the benefits of having a company car.

This is contribution number 24 by KPMG Meijburg & Co regarding company car.

For employees having the benefit of a company car, the calculation of the taxable fringe benefit for tax purposes substantially depends on the distance between home and work. Employees who live more than 30 kilometres from their place of work the addition is 24 per cent of the new value of the car. For all others the addition equals 20 per cent. This distinction recently triggered a major discussion. The reason for this was a ruling by the Supreme Court of March 2, 1995 in which the Supreme Court indicated that the 24 per cent addition is perhaps discriminating and consequently not binding.