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Company car & public transport
Since 2009, the government seems to have been encouraging employees who have a company car to use public transport instead when travelling between home and work.
In this case, if an employer reimburses the public transport costs on top of providing a company car, this reimbursement is not taxable as a calculation benefit in kind. Moreover, in this situation, the calculation benefit in kind of the company car is no longer calculated on the basis of the distance between one's home and work but between one's home and the station.
In concrete terms: in case of a standard company car, since 2004, the calculation benefit in kind has been calculated on the basis of 5000 km or 7500 km, depending on the fact whether the employee lives up to 25 km or more than 25 km from his or her steady workplace. Since 1 January 2009, the exemption of this benefit has been increased from 170 euros to 350 euros (indexed), effective from the fiscal year 2010.
For those who mainly, or exclusively, use their company car to cover the distance between their place of residence and the station, while travelling from home to work and back, the taxation will in principle be based on 5000 km. Only if the distance between the station and the place of residence exceeds 25 km will the tax office base the taxing on 7500 km.
(Source: Netto)