benefit in kind
CO2 contribution

As of January 1, 2017 the formula for calculating the Benefit In Kind (BIK) will change and the so-called CO2 contribution will be indexed.


Benefit In Kind: reduction of the CO2 emission reference value

The provision of a company car to an employee, who is allowed to use the car partly for private purposes, triggers a Benefit In Kind (BIK). This Benefit In Kind, subject to income tax, is calculated using the following formula:

Catalogue value of the vehicle X correction coefficient X 6/7 x CO2 percentage

The reference CO2 emissions will continue to decrease as from January 1, 2017:
• for diesel cars the reference CO2 emissions will decrease from 89 g/km to 87 g/km
• for cars with petrol, LPG or gas engines the reference drops from 107 g/ km to 105 g/km
This decrease will cause the Benefit in Kind to rise.


An Audi A4, diesel engine, with a catalogue value of 30.800 EUR (1st year of registration) has a CO2 emission of 123 gr/km. The Benefit In Kind in 2017 will amount to 200.20 EUR per month. Compared to the reference emission for the year 2016, this represents an increase of 4.40 EUR per month.

The minimum BIK in 2017 increases from 1260 EUR to 1280 EUR per year.

Indexation of the CO2 contribution

Since 2005 a solidarity contribution is due on company cars which are also used for private purposes. This contribution is due regardless of a financial contribution by the employee in the financing or the use of the car.

The CO2 contribution is calculated based on the CO2 emission of the vehicle in question and is indexed every year. This indexation is the consequence of the change of the health index. For the year 2017 the CO2 contribution is calculated as follows:

  • Petrol vehicles:       ((CO2 emission x 9 EUR) - 768) x (142,46/114,08)
  • Diesel vehicles:       ((CO2 emission x 9 EUR) - 600) x (142,46/114,08)
  • LPG vehicles:          ((CO2 emission x 9 EUR) - 990) x (142,46/114,08)
  • Fixed contribution electric vehicles: 20,83 EUR x (142,46/114,08)

For all vehicles applies that the monthly CO2 contribution in 2017 can never amount to less than 26.01 EUR.