Everything about company cars
Deductibility, BIK & CO₂
With more than 500,000 company cars on the road, Belgium is one of the European countries where this salary benefit is most widespread. This guide summarizes what matters in 2026.
Deductibility rate by fuel type
All costs linked to the car are deductible according to the rate applicable to the fuel type, in line with the 2025–2028 reform.
| Fuel type | Deductibility rate | CO₂ contribution | Evolution |
|---|---|---|---|
| Electric (EV) | 100% | Flat ~€42/month | 100% maintained beyond 2028 |
| PHEV (plug-in) | 50% | Full rate | Progressive reduction until 2028 |
| Hybrid (HEV) | 50% | Full rate | Same as PHEV |
| Diesel | 50% | Full rate | Reduced towards 0% in 2028 |
| Petrol | 50% | Full rate | Reduced towards 0% in 2028 |
* PHEV ordered from 01/01/2026: 0% deductibility. The 50% rate shown only applies to contracts signed before that date.
Benefit-in-Kind (BIK)
BIK is the taxable value of the private benefit enjoyed by an employee using a company car. It is taxed as professional income.
Benefit-in-Kind (BIK)
Annual BIK = Catalogue value × CO₂ rate × Age coeff. × 6/7
Monthly BIK examples 2026
| Model | Catalogue | CO₂ | BIK/year | BIK/month | Tax/month* |
|---|---|---|---|---|---|
| Tesla Model 3 SR | 42 990 € | 0 g/km | 1 690 € | 141 € | ~56–85 € |
| BMW 320d | 53 500 € | 142 g/km | ~6 374 € | ~531 € | ~212–266 € |
| Volkswagen Golf 1.5 eTSI | 37 800 € | 118 g/km | ~3 337 € | ~278 € | ~111–139 € |
* Marginal rate 40–60%. BIK Calculator
The employer CO₂ contribution
In addition to the BIK, the employer pays a monthly CO₂ contribution indexed on vehicle emissions. For EVs, this is reduced to a much lower flat amount.
2026 estimates — formula indexed every year.
Frequently asked questions
Can a plug-in hybrid (PHEV) still be deducted at 100%?
No. PHEVs acquired from 1 January 2026 are not deductible at all (0%). Only fully electric vehicles remain fully deductible.
How do I calculate the BIK of my company car?
The official FPS Finance formula is: catalogue value incl. VAT × 6/7 × CO₂ rate. The CO₂ rate ranges from 4% for EVs to 18%. Our BIK calculator does it for you in seconds.
Is a PHEV still a good tax choice in 2026?
For a vehicle acquired before 1 January 2026, yes: 50% in 2026, 25% in 2027, 0% in 2028. For a new acquisition in 2026, it is 0% immediately — PHEVs are no longer tax-efficient for new purchases.
Does an employee contribution reduce the BIK?
Yes. If the employee contributes financially to company car costs, this contribution can reduce the taxable BIK under specific conditions.
Is VRT deductible for a company?
VRT is included in the cost price of the vehicle. It is therefore deductible at the same rate as the car itself: 100% for EV, 50% for PHEV acquired before 2026 (0% for new acquisitions), 50% for diesel.
What is the difference between BIK and the CO₂ contribution?
BIK is a taxable benefit for the employee. The CO₂ contribution is a monthly employer charge based on vehicle emissions. Both mechanisms apply simultaneously.
Simulate the BIK of your company car
Exact calculation per FPS Finance formula · Updated 2026