Are you currently driving a full-electric leased car that is less than five years old? Then the original tax rate still applies. For example, if your car was first registered in January 2019, you’ll pay the rate that was applicable at the time, i.e. 4% of the purchase value up to 50,000 euros. The rate applies till January 2024, being sixty months, so five years. These are the rates you’ll pay this year:
- Petrol, diesel, hybrid: 22%
- EV registered in 2019: 4% up to 50,000 euros *)
- EV registered in 2020: 8% up to 45,000 euros
- EV registered in 2021: 12% up to 40.000 euros
- EV registered in 2022: 16% up to 35,000 euros
- EV registered in 2023: 16% up to 30,000 euros
- Lease bike: 7%
*) You pay 22% addition to taxable income on the amounts in excess of these threshold amounts.
What’s included in the threshold?
In the Netherlands, you are taxed on the purchase price of the car including the tax on passenger cars (bpm) and Dutch VAT. This includes accessories and options installed in the factory. Accessories installed by the dealer are excluded.
Electric cars are currently still exempt from bpm, but from 2025 this tax is EUR 360. From 2025, this amount is expected to rise at the inflation rate.
Tax benefits EVs evaporate
As you have seen, the addition to taxable income has risen sharply since 2020. In 2025 there will be an increase to 17% and from 2026 you will have to pay the full 22%. As mentioned, bpm will be introduced and the current exemption from road tax for full-electric cars is likely to be cancelled.
Don’t you want to pay the addition?
In the Netherlands, you are not taxed if you privately drive your leased car less than 500 km on an annual basis. To qualify for exemption, you must maintain a detailed administration of your rides. And to indemnify your employer against claims from the tax authorities, you also have to sign a statement of no private use of company car (Verklaring geen privégebruik auto).
Another option is a mobility budget, instead of a leased car. Many employers offer such a budget as part of their mobility policy. Using your mobility allowance, you finance different types of mobility, which may range from a privately owned car or a public transport season ticket to a bike. Of course, you may also opt for a tax-free kilometre allowance, currently EUR 0.21 per kilometre, for using your privately owned car or your private lease car. As far as private lease is concerned, please be aware that it results in a registration at the Dutch Credit Registration Office (BKR). That registration affects the maximum amount for which you can take out a mortgage.
Do you have any questions?
Do you want to know about your situation? Or what possibilities your employer’s mobility policy offers? Talk to us! Call us at
+31 (0)30 208 02 60, or at the direct number you have received from us.