As an employer, you can provide your employees with a company car, which offers numerous financial and tax benefits for both your company and your staff.
Company cars come in different categories
Company cars include passenger cars, dual-purpose cars, minibuses and light goods vehicles. A light goods vehicle is a vehicle for transporting goods that has a maximum authorised mass not exceeding 3 500 kg.
Employees can also use their company car for reasons other than business purposes, which is called private use. This consists of trips the driver makes in their spare time as well as commuting.
Numerous financial and tax benefits
Providing a company car has many tax and financial implications for both employers and employees:
- VAT refund
- Vehicle and fuel costs are tax deductible, but VAT on those costs is not
- CO2 solidarity contribution borne by the employer
- Taxable benefit in kind for employees and company managers
- Disallowed expense for employees
More information
If you have specific questions about tax rules or the other implications of offering company cars, the staff at KBC Autolease will be happy to give you expert advice.