Cars & mobility

Increase in untaxed travel allowance

In 2023, an employer may grant its employees an untaxed travel allowance of up to € 0.21 per business kilometre (including commuting). This maximum untaxed allowance will be increased to € 0.23 per kilometre as of 1 January 2024. The increase also applies for income taxation, so that entrepreneurs and recipients of income from other activities can deduct € 0.23 per kilometre from their profits for each business kilometre they drive using their private means of transportation (car, motorcycle or bicycle).

• Tip! Commuting kilometres can be counted as business kilometres.

Flat-rate increase on tax on passenger cars and motorcycles

The tax on passenger cars and motorcycles (BPM) comprises two parts: the flat-rate and a variable part. The variable part is based on carbon emissions. The government proposes to increase the BPM’s flat-rate by € 200 as from 2025.

Discontinue refund of BPM for cash-in-transit vehicles

The government proposes to discontinue the BPM refund on CIT vehicles as of 1 January 2026.

Changes in motor vehicle taxes

Motor vehicle taxes (motorrijtuigenbelasting, MRB) are subject to a number of zero or reduced rates.The government proposes to:

• Abolish the zero or lower MRB rate for registered passenger cars and vans using LPG, CNG and LNG fuel as of 1 January 2026.
• Abolish the zero MRB rate on public transport buses powered by autogas as of 1 January 2030.
• To change the MRB rate for campers from a quarter rate to a half rate as of 1 January 2026.
• To discontinue and revert the quarter MRB rate for the transportation of horses (horse trailer) to the normal rate as of 1 January 2026.
• To shorten the additional tax assessment period for motor vehicles with a foreign license plates from a maximum of 5 years to a maximum of 12 months. The burden of proof will be the same as for other additional tax assessments.
• To clarify the situation that an additional tax assessment for the MRB is possible due to a change in the motor vehicle. This includes converting a van into a passenger car. It does not matter whether the change was made by the previous or the current owner.
• Reducing the additional tax assessment from 12 to 3 months if the driver cannot produce a trade plate in the event of being stopped and questioned.
• To clarify, the MRB exemption for a test run in the context of the periodic vehicle inspection (algemene periodieke keuring, APK) only applies on the date of the APK.

Vintage cars are subject to a specific MRB scheme. Vehicles that are 40-years old or older are exempted from MRB. The government proposes that the vintage car exemption in the MRB, for cars aged 40 years and older, should be reduced from 2028 to vehicles manufactured before 1988 (with a date of first registration being before 1 January 1988).

Depreciation of BPM on imported vehicles

Depreciation of a used motor vehicle subject to the BPM can be determined using a generally used trade price list. If an imported vehicle, as assessed by make, model, transmission, fuel, power, bodywork and design does not correspond to a vehicle on the price list (excluding a slight variation in carbon emissions), then the trade purchase value can be determined on request based on an individual valuation (valuation report) for determining the correct depreciation. In 2023, this was decided by the Supreme Court and is now being codified in Dutch tax law.

Rate change on tax on passenger cars and motorcycles

A rate change of the tax on passenger cars and motorcycles (BPM) applies to a new motor vehicle which is currently registered and of which the first registration of the motor vehicle takes place two months or later than the time of the rate change. If the first registration occurs within two months of the rate change, the old rate applies. To avoid discriminatory elements in this scheme, it was already approved on 12 December 2022 that this scheme also applies to the registration of a new motor vehicle in another Member State of the European Union. It is proposed that this scheme should be codified in Dutch tax law.

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