Belgium Reduces Tax on Private Car Use by Employees

Connecticut Enacts Paid Family and Medical Leave

Employees in Belgium will pay a slightly reduced “benefit in kind” tax for the private use of a company car in 2020 because of changes to the vehicle carbon dioxide (CO2) emissions reference. The CO2 emission changes feature in a 3 Dec 2019 royal decree (French) and employers should use the revised references in January 2020 payroll processing. Revised CO2 references are: 

  • Petrol, LPG or natural gas cars ─ 111 g CO2/km (up from 107g CO2/km in 2019)
  • Diesel cars ─ 91g/CO2/km (up from 88 g CO2/km in 2019)

To calculate the “benefit in kind” taxation applicable to the private use of company cars, employees are taxed at 6/7th of the car’s gross list price, multiplied by a percentage linked to the car’s CO2 emission reference. 

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Dieter Valgaerts
by Dieter Valgaerts

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Fiona Webster
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Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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