What is the benefit in kind for a company car in Belgium?
When a Belgian employer lets an employee use a company car for private journeys, including the commute, the employee receives a taxable benefit in kind (avantage de toute nature, or ATN, in French; voordeel van alle aard, or VAA, in Dutch). It does not depend on the kilometres driven: it is a flat amount set by a legal formula and added to the employee’s taxable pay.
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Schedule a strategy callHow the benefit is calculated
The annual benefit is the car’s catalogue value, multiplied by 6/7, by an age coefficient and by a CO2 percentage. The catalogue value is the list price of the new car, with options and the VAT actually paid, before any discount.
The CO2 percentage is 5.5% for a car that emits exactly the reference emission, and rises or falls by 0.1% for each gram above or below it, within a range of 4% to 18%. Electric cars always use 4%. For 2026 the reference emissions are 70 g/km for petrol, LPG and natural gas cars and 58 g/km for diesel cars, set by a royal decree of 17 December 2025.
The age coefficient reduces the catalogue value by 6% for each year since first registration: 100% in the first 12 months, then 94%, 88%, 82% and 76%, down to 70% after five years. Whatever the result, the benefit cannot be lower than €1,690 a year in 2026.
A worked example
A new petrol car with a catalogue value of €40,000 that emits 120 g/km is 50 grams above the reference, so its CO2 percentage is 5.5% plus 5%, or 10.5%. The benefit is €40,000 x 6/7 x 10.5% = €3,600 a year, or €300 a month. A new electric car with the same catalogue value gives €1,371 a year at 4%, so the €1,690 minimum applies instead.
Tax and social security
The benefit is subject to income tax and is included in the payroll withholding tax each month. It is not subject to ordinary social security contributions: instead, the employer pays a flat monthly CO2 solidarity contribution for each car. If the employee pays towards the private use of the car, that payment is deducted from the taxable benefit.
Company cars when TopSource runs your payroll
When TopSource runs your payroll in Belgium, we calculate each car’s benefit from its catalogue value, emissions and age, apply the annual minimum, include it in withholding tax and on the employee’s annual tax form, and declare the CO2 solidarity contribution.
Frequently asked questions
What are the 2026 CO2 reference emissions for company cars in Belgium?
70 g/km for petrol, LPG and natural gas cars and 58 g/km for diesel cars. Electric cars always use the minimum CO2 percentage of 4%.
What is the minimum benefit in kind for a company car in 2026?
€1,690 a year, whatever the car’s catalogue value, emissions or age.
Is the company car benefit subject to social security in Belgium?
No. It is taxed as income, but instead of ordinary contributions the employer pays a flat monthly CO2 solidarity contribution for each car.
Related terms in Belgium
- Joint Committee (Belgium)
- Dimona Declaration (Belgium)
- Unified Status (Belgium)
- Outplacement Obligation (Belgium)
- Non-Compete Clause (Belgium)
- Time Credit (Belgium)
- Work Regulations (Belgium)
- Single Permit (Belgium)
- Ecocheques (Belgium)
- Payroll Withholding Tax (Belgium)
- Automatic Salary Indexation (Belgium)
- Meal Vouchers (Belgium)
- CO2 Solidarity Contribution (Belgium)
- Group Insurance and the 80% Rule (Belgium)
- Tax Form 281.10 (Belgium)
- DmfA Declaration (Belgium)
- Social Secretariat (Belgium)
- Non-Recurring Result-Related Bonus (Belgium)
- Cafeteria Plan (Belgium)