How does one calculate the additional tax on a vehicle?

How is addition tax on a vehicle calculated?

Addition tax is a tax scheme in the Netherlands that applies to business lease cars that are also used privately. The addition is calculated based on the catalogue value of the vehicle, its CO2 emissions and the addition percentage applicable at the time.

Here are the main steps for calculating the additional taxable benefit:

• Determine the addition tax rate: The addition tax rate is determined based on the vehicle's CO2 emissions and can range from 4% to 22%. Electric cars often have lower addition rates.

• Catalogue value of the vehicle: The catalogue value is the original price of the vehicle, including options and accessories, but excluding BPM and VAT. This amount is multiplied by the addition percentage.

• Annual addition: The addition is calculated as a percentage of the catalogue value of the vehicle. This amount is calculated on an annual basis.

• Private use: If you also use the vehicle privately, you must add this amount to your taxable income. This leads to a higher tax payment.

• Duration of the addition tax rate: The addition tax is usually fixed for a period of 60 months (five years) after registration of the vehicle. At the end of this period, the addition is reset according to the addition tax rules at that time.

Can I avoid the addition tax on a vehicle?

The additional tax on a vehicle can be avoided by using the vehicle exclusively for business purposes and not for private use. A comprehensive trip record is required to prove that you did not use the vehicle for private purposes. If you can prove that the vehicle has only been used for business purposes, you do not have to pay an addition tax.

How can Lease.car help me with the addition tax on a vehicle?

At Lease.car, we understand that the addition tax on a vehicle is a complex and important aspect of business leasing. Our team of experts is ready to advise and help you understand how addition tax works and how to make optimal use of it. We offer tailor-made solutions and answer all your questions to ensure you make the right choices regarding additional taxable benefit on a vehicle.

We aim to provide transparent and clear information on all aspects of Financial Lease, including additional taxable benefit. If you need more information or have any questions about additional taxable benefit on a vehicle and how it applies to your situation, please do not hesitate to contact us. We're here to help you!

Calculate your addition tax easily with Lease.car

Discover how the additional tax rate for your leased car is calculated and apply it directly in our easy-to-use leasing calculator. The formula is simple: percentage addition x catalogue value of the car - your own contribution. For more details, visit our informative page.

A Practical Example:

Suppose the list value of your leased car is €25,000 with a standard addition rate of 22%, and you contribute €1,200 annually out of your own wallet. In this case, the annual addition comes down to: 22% of €25,000 - €1,200, resulting in an addition of €4,300 per year. To calculate the net addition, we multiply this amount by the income tax rate applicable to you. At a rate of 36.97%, the net addition in this example is €1,589.71 on an annual basis.

When you use our lease calculator to find the perfect leased car, we immediately show you the net addition amount you will pay. This amount depends on your income, which you can easily adjust by clicking on the gear wheel and selecting the right tax bracket.

With lease.car, finding your ideal lease car, including calculating your addition tax rate, becomes a piece of cake. Your financial situation is unique, which is why we offer a personalised experience to suit your needs. Get in touch with us now. Contact and request no-obligation advice!