12% pseudo-final levy for company cars 

The government has announced that from 1 January 2027, employers will face an additional tax on company cars with CO₂ emissions. The measure was presented on Prinsjesdag and included in the 2026 Tax Plan.

This is a pseudo-final levy in the payroll tax, which will be paid entirely by the employer. This levy is separate from the existing additional tax liability for the employee and is in addition to it.

Who is subject to the pseudo-final levy and which vehicles are affected?

The 12% pseudo-final levy applies when an employer provides a company car. That may also be used for private purposes and has CO₂ emissions greater than zero. This levy is payable in full by the employer and may not be recovered from the employee.

The scheme applies to:

• Employers of salaried staff, including private limited companies that provide a car to a director-major shareholder;
• Income tax entrepreneurs do not pay the levy for their own car, but they do if they employ staff;
• Passenger cars (M1 vehicles): motor vehicles designed for the transport of persons with a maximum of nine seats, including the driver’s seat. This includes regular passenger cars, camper vans, minibuses for healthcare transport (maximum nine seats) and hearses.

Vehicles such as delivery vans, lorries and tractors are excluded from the scheme.

Exceptions and special situations

Not all company cars are taxed. Exceptions are:

1. Passenger cars with no CO₂ emissions, such as fully electric or hydrogen cars;
2. Cars that are used exclusively for business purposes and are not available for private use.

In the event of occasional private use due to force majeure or special circumstances. The exception may still apply, provided that the employer can demonstrate this.

Please note: for the purposes of the pseudo-final levy, commuting is considered private use. This means that the levy may also be payable if an employee drives no more than 500 kilometres privately but uses the car for commuting.

Transitional arrangement until 17 September 2030

A transitional arrangement applies to passenger cars that were already made available before 1 January 2027. These vehicles will only be subject to the pseudo final levy from 17 September 2030. The arrangement is linked to the car itself, so even if the car is assigned to another employee after 1 January 2027 the transitional arrangement will continue to apply.

Calculation and payment of the levy

The pseudo-final levy is calculated as 12% of the catalogue value of the car, including VAT and BPM. Any personal contributions made by the employee are not taken into account. For cars older than 25 years, the market value applies.

The levy is calculated per calendar month. Payment can be made no later than the second payroll tax return of the following calendar year, i.e. for 2027 no later than the second payroll tax return period of 2028.

The pseudo-final levy applies to the entire calendar month. If the car is available for private use for even part of the month.

How Crowe Peak can help

The pseudo-final levy may have financial and administrative consequences for organisations with lease cars.

Please contact us for a no-obligation consultation and ensure that your organisation. Is well prepared for the introduction of the pseudo-final levy.