Do you have a company rental car? Depending on the type of lease, you can deduct your expenses. In the case of an operating lease, all monthly lease invoices are deductible. In the case of a finance lease, the payments also include an amount to be reimbursed. The reimbursement portion of the payments is not deductible. If you operate a business in the Netherlands and you or your employees use a car on business trips, in some cases you can grant an allowance for the costs or offset the costs against the tax. The rules that apply depend on your situation. In general, the Dutch tax and customs administration (Belastingdienst) distinguishes between driving a private or rental car, a company car or a leasing car. This form is nothing more than a car lease for a slightly older car. Often, these cars or company cars were previously offered for rent and exchanged by a former owner. The advantage of this is that you can take out a used car (often no more than three years) for a more attractive and short-term monthly rate. One disadvantage of this is that it may require more maintenance than a new car and there are signs of use.

There are a number of different forms of rental. The most common forms are leasing, operational lease, short lease and occasional lease. With a short-term lease, you can rent a car for a short period of time. B one or two months. This is useful if you need a car temporarily. For example, temporary workers. The benefits are flexibility, no long-term commitments (often cancellable on a daily basis) and little or no financial risk. These are questions that come to mind when considering renting a car for business purposes. In recent years, in addition to commercial leasing, private leasing has also gained ground. This blog focuses only on corporate leasing in the Netherlands.

It explains the pros and cons. In addition, you can learn more about the different forms of rental. With this contract, companies offer their employees a company leasing car. In the case of an operating lease, the car remains the property of the leasing company. In this case, it is a material salary in which the amount for the use of the leasing car is added to the monthly salary. If you manage to stay below 500 km per year for personal reasons, there are no additional taxes. If you also want to use the car for personal purposes or exceed 500 km annually, you will have to pay an additional monthly tax on vehicles (this also applies to all other types of rental). To encourage the use of rented bikes, electric bikes and pedelecs instead of or combined with a company car, you can drive both a company car and a company bike. Employees do not have to calculate the number of private kilometres travelled on the bike. Instead, they must add 7% of the recommended price of the bike (new model) to their taxable income over a period of several years. There will be a gradual increase in the private use allowance (bijtelling) for zero-emission company cars such as electric cars, hydrogen cars and solar-powered cars. This supplement for private use is a percentage of the list price on which you pay income tax.

The addition also applies if you rent an electric car. These zero-emission cars have a lower percentage of addition than cars powered by fossil fuels. A rented car is not part of your company`s assets, but the cost is at the expense of your business. You can offset the costs with your income, as long as you take into account the private use of the vehicle. You can also deduct the VAT charged to you by the leasing company. What do I need to know for a company rental car? How to choose the right type of rental agreement? How much will my tax surcharge (Dutch law) be? How can I benefit from tax advantages? How to choose the right leasing company? If you buy or import a car in the Netherlands, or if you have a car in your name, you pay taxes. For rented vehicles, the tax is included in the rental price. The charging service distinguishes three types of taxes: motor vehicle tax, motor vehicle tax and heavy motor vehicle tax. The range of leasing cars has increased sharply in recent years. There is a wide range of leasing cars to choose from and so it is difficult to find the model that best suits your needs. It is also important to think about how long you want to conclude a rental agreement.

The usual duration of the contract varies between 12 and 48 months, but 60 months are also possible. From the moment a car is more than 15 years old, the supplement for the private use of a car is based on the market value of the car. Auction prices can give an indication of value. You can also check the estimated value of the car for insurance purposes or the actual mileage and rental prices. The fair market value may be higher than the price of the original new car. If you drive a company car, 25% of the value of the Dutch catalogue will be added to your income by 31 December 2016. This is a percentage that is set for everyone, unless it is clear that the car is not so much used for the company, but almost exclusively in private, then the percentage could be increased. If your private use of the car does not exceed 500 km per calendar year, you can apply to the Tax and Customs Administration for a declaration of non-private use of the company car (Verklaring geen privé-gebruik auto).

You submit a copy of this return to your employer, who can then waive the addition of additional taxes. You should always be able to convincingly prove to the tax and customs administration that your private use of the car has not exceeded 500 km. You can do this, for example, by using a full mileage log. You deduct from the contribution that your employee pays from his net salary for the private use of a car from the supplement for the private use of a car. Where applicable, the employee`s contribution to the private use of a vehicle during a given salary period may be greater than the supplement to be included in the salary for that wage period. Although a negative balance is then eligible over a certain salary period, the balance for the full addition must never be negative in an entire calendar year. If it turns out that you have balanced more than the employee`s total contribution at the end of the calendar year, you will need to adjust 1 or more past returns. If you have agreed with your employer that you will pay a contribution for the private use of the car, this amount will be deducted from the supplement. You will then only pay taxes on the reduced supplement. If the contribution is greater than the addition, the addition becomes 0.

It can never be a negative number. The additional percentage depends, among other things, on the CO2 emissions of the vehicle. Information on the additional percentage you need to apply can be found in “Handboek Loonheffingen”, chapter 23 (available only in Dutch). A salary increase is applied to employees who have a company car. .