Company Cars and Holidays

You are considering going on vacation with your SRL’s car this summer. You wonder if this will affect your taxable benefit in kind (BIK).

If your SRL provides you with a car for private use, a BIK is calculated using the formula: (catalog value × depreciation coefficient × 6/7 × CO2 percentage), with a minimum of €1,600 (2024 income). The number of private kilometers, whether in Belgium or abroad, does not affect your BIK.

If your company pays for additional equipment, it increases the car’s catalog value and thus your BIK, but this increase remains slight, and the depreciation correction applies to the catalog value, including accessories. Any toll fees are considered additional taxable remuneration, not included in the BIK. Check the insurance to ensure all household members can drive as this does not increase your BIK.

If you rent a car at your destination and have the rent paid by your company, this is considered a private expense. The tax administration could impose an additional BIK, reject the rental expenses, or tax you on the rental amount if the rent is not recorded in your current account.