Benefits in kind: uniform calculation for houses and reduced benefit for company cars
Changes have been made to the calculation of the benefit in kind of houses and company cars.
Uniform calculation for benefit in kind of house
The federal government has determined a single method of calculating the benefit in kind resulting from an employer putting housing at the disposal of an employee or a director.
The benefit in kind will be set at 100/60 of the (revised) cadastral income, multiplied by 2.
No distinction is made anymore depending on who is offering free use of housing (individual or corporate entity) or on the amount of the cadastral income (below or above 745 EUR). Several court rulings had considered the previous regime as unconstitutional.
The new regime, introduced by a Royal Decree of 7 December 2018 (published in the Belgian Official Gazette of 27 December 2018), will apply to benefits in kind granted as from 1 January 2019.
The government will deal with the issue of foreign real estate (for which no cadastral income is set) in the future.
Lower benefit in kind of company car
The calculation of the benefit in kind of a company car depends, among other factors, on the reference CO2 emission. The reference emission for 2019 has been published by Royal Decree of 19 December 2018 (Belgian Official Gazette of 27 December 2018).
Compared to last year, the reference emission has increased:
- Cars running on petrol, LPG or natural gas: 107 g/km (instead of 105)
- Cars running on diesel: 88 g/km (instead of 86)
This means that, all other factors remaining equal, the benefit in kind for a given car will slightly decrease as from January 1, 2019.