Individual Tax Alert (03/10/2012)
New extended FAQ on the calculation of the BIK for company cars
On 1 October 2012, the tax authorities published, on their website, a new FAQ in relation to the benefit in kind (BIK) calculation for the private use of company cars.
The new FAQ updates and completes the one dated 13 April 2012 with a number of examples and new FAQs, giving a total of 59. The FAQ addresses a number of questions the tax authorities have received in the past months regarding the application of the new rules. The most striking change concerns question 28 regarding the situation where the list price is temporarily reduced further to a (general) promotional action. In such case, the reduced list price has to be taken into account for the calculation of the benefit in kind, provided a number of conditions are met. Also, when the price of an option pack is reduced further to a (general) promotional campaign, the reduced price has to be taken into account, subject to a number of conditions.
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