“Addition to taxable income” is an amount you must include when you use a company car for private purposes as well. The amount depends on several factors.
As an entrepreneur, you may normally deduct all car-related expenses, such as fuel, road tax, maintenance, depreciation, and insurance.
But do you also use the car privately? Then you must apply a correction: you are not allowed to deduct all costs. This correction is called bijtelling.
Bijtelling for entrepreneurs works as follows: the amount is not added to your income, but instead reduces the business expenses you are allowed to deduct. As a result, your profit becomes higher, and you pay income tax on that higher profit.
For entrepreneurs, bijtelling is therefore not extra income, but a reduction of deductible expenses.
"}},{"componentType":"sectionTitle","title":"When does bijtelling apply?"},{"componentType":"paragraph","richBody":{"value":"The threshold is 500 private kilometres per year. If you drive less than this privately, you do not need to take bijtelling into account. However, you must be able to prove this with a complete and accurate trip log. This means you must be able to account for every kilometre driven. The best way to do this is by using a certified Trip Registration System (Keurmerk RitRegistratieSysteem).
Do you drive more than 500 private kilometres? Then bijtelling applies automatically.
Please note: this annual limit of 500 kilometres is calculated proportionally.
Example: if you first start using a company car on 1 October, you may drive a maximum of 3/12 × 500 = 125 private kilometres.
The bijtelling tax depends on:
Please note: In addition to income tax, VAT may also play a role. If you use a business vehicle for private journeys, you may need to make a VAT adjustment for private use relating to the vehicle costs.
Example:
You drive a business vehicle (not electric) with a list price of €40,000.
A VAT adjustment for private use may also apply. This is often calculated as a fixed percentage of the vehicle's list price, for example 2.7% per year. The exact VAT treatment depends on your circumstances and the applicable tax rules.
It is also worth noting that costs such as fuel, maintenance and insurance can generally still be deducted as business expenses. However, the benefit-in-kind charge is intended to account for the private use of the vehicle and may affect your overall tax position.
Please note: The examples above are illustrative only and provided as general information. The actual outcome will depend on your personal circumstances and tax situation.
You can find more information on the Dutch Tax Administration website.
"}},{"componentType":"sectionTitle","title":"Bijtelling and electric cars"},{"alignedImage":{"position":"right","extension":"svg","original":"https://assets.ing.com/m/1f137039c1ccbb07/original/electriccarcable.svg","transformBaseUrl":"https://assets.ing.com/transform/58141aa7-9610-4cb1-bf1e-bf9dd7ed51e5/electriccarcable"},"componentType":"paragraph","richBody":{"value":"For fully electric vehicles, a lower benefit-in-kind rate applies in 2026 than for many other company cars. You pay 18% benefit-in-kind tax on the first €30,000 of the vehicle's list price and 22% on any value above that threshold.
Benefit-in-kind tax generally applies when a company car is available for private use and more than 500 kilometres are driven privately during the year. The benefit-in-kind value is added to your taxable income and may affect the amount of tax you pay.
The amount of tax you ultimately pay depends on several factors, including your personal circumstances, income tax rate and the vehicle you drive.
Please note: Tax rules and rates may change. The actual impact will depend on your individual circumstances and the applicable tax legislation.
All rules can be found on the Dutch Tax Authority's website.
"}},{"componentType":"sectionTitle","title":"Youngtimer scheme: advantage for older cars"},{"componentType":"paragraph","richBody":{"value":"Do you drive a company car that is 16 years old or older? You may be eligible for the youngtimer scheme. Instead of paying benefit-in-kind tax based on the vehicle’s original list price, the benefit-in-kind is calculated using the vehicle’s current market value. This can be particularly advantageous for vehicles that originally had a high list price but have since depreciated significantly.
The benefit-in-kind rate for a youngtimer is 35% of the vehicle’s current market value. As the market value is often considerably lower than the original list price, the total benefit-in-kind charge may be lower than that of a newer company car.
Please note: the rules for youngtimers are changing from 2026
The amount of tax you ultimately pay depends on the vehicle’s market value, your income and your individual tax circumstances.
Please note: Tax rules and rates may change. The actual impact will depend on your personal circumstances and the applicable tax legislation.
"}},{"componentType":"sectionTitle","title":"Bijtelling for vans"},{"alignedImage":{"position":"left","extension":"svg","original":"https://assets.ing.com/m/2897ea900317aa79/original/AutoSalon_Camio2.svg","transformBaseUrl":"https://assets.ing.com/transform/5b5d9ff7-a80a-4414-a25d-31cf0179fa6c/AutoSalon_Camio2"},"componentType":"paragraph","richBody":{"value":"Do you use a company van? The rules for private use also apply to almost all company vans.
In some situations, you do not have to pay bijtelling, for example if:
There is an exception for vans that are almost exclusively suitable for transporting goods. In that case, the van has been modified, for example by having only a driver’s seat and no option to install a passenger seat. In such situations, you must calculate the private use.
Not with the standard bijtelling, but based on the number of private kilometres you drive.
You multiply this by the actual cost per kilometre, and this amount is deducted from the total vehicle expenses.
Do you want to avoid paying bijtelling?
Then you must be able to prove that you drive fewer than 500 private kilometres per year. You do this with a complete and accurate trip log. For each trip, the log must include:
There are convenient apps and trip‑registration systems that can record this automatically. Even Flitsmeister offers this via a monthly subscription. Tools such as RouteReg, TimeChimp and Cartracker also provide suitable solutions.
For the most up-to-date and comprehensive information about company car tax, private use and benefit-in-kind rules, we recommend consulting the Dutch Tax Administration website and/or contacting your accountant or tax adviser.
You can find more information about the Declaration of No Private Use of a Company Car on the Dutch Tax Administration website.
"}},{"componentType":"sectionTitle","title":"Insurance or leasing"},{"componentType":"paragraph","richBody":{"value":"Do you have a company car or van? Then you’ll want to make sure you are properly insured. With ING, you can arrange this quickly and easily. And if you’re considering a new vehicle, be sure to explore our leasing options as well. This way, you can drive with confidence and convenience.
"}},{"cards":[{"cardSize":"small","cardType":"product","componentType":"productCard","image":{"extension":"jpg","original":"https://assets.ing.com/m/7e037453e0b29956/original/BB-Insurance-only-Woman-steps-out-van-switch.jpg","transformBaseUrl":"https://assets.ing.com/transform/6f47ef63-8c5a-4158-92df-bde6673078ea/BB-Insurance-only-Woman-steps-out-van-switch","type":"image","width":1700},"intro":"For your company vehicle and commercial licence plate.","link":{"url":"/en/business/insurance/ing-company-van-insurance"},"title":"The company van insurance of ING"},{"cardSize":"small","cardType":"product","componentType":"productCard","image":{"extension":"jpg","original":"https://assets.ing.com/m/530d3040f14a6d8/original/BB-Insurance-only-portrait-of-young-man-using-mobile-phone-while-sitting-in-car.JPG","transformBaseUrl":"https://assets.ing.com/transform/6581ff6b-f0fb-4d6b-8a6d-7faf5f805d1f/BB-Insurance-only-portrait-of-young-man-using-mobile-phone-while-sitting-in-car","type":"image","width":1700},"intro":"Choose the cover that best suits your company car.","link":{"url":"/en/business/insurance/ing-company-car-insurance"},"title":"The company car insurance of ING"},{"cardSize":"small","cardType":"product","componentType":"productCard","image":{"extension":"png","original":"https://assets.ing.com/m/6b53e48a39e39569/original/ING-Zakelijke-Bestelbusverzekering.png","transformBaseUrl":"https://assets.ing.com/transform/c186d069-3638-4674-90fe-dd77c4a7a31c/ING-Zakelijke-Bestelbusverzekering","type":"image","width":1295},"intro":"For a car, company vehicle, or van – even second-hand.","link":{"url":"/en/business/loans-and-finance/lease-and-asset-finance/vehicles"},"title":"Lease a vehicle"}],"componentType":"cards"},{"componentType":"sectionTitle","title":"Frequently asked questions about bijtelling"},{"accordionList":[{"richBody":{"value":"No, only if you drive more than 500 private kilometres per year with your company car.
"},"title":"Do I always have to pay addition/bijtelling?"},{"richBody":{"value":"Employees: Bijtelling is applied through payroll taxation. The amount (e.g. 22% of the list price) is added to the employee’s taxable income.
Entrepreneurs: For entrepreneurs, bijtelling is processed by making a correction to the car expenses in the profit calculation. It is not applied through payroll tax.
"},"title":"Bijtelling – difference between employee and entrepreneur"},{"richBody":{"value":"In that case, a lower bijtelling percentage often applies. Make sure to check the current rules.
"},"title":"What if I drive an electric car?"},{"richBody":{"value":"With a complete mileage log.
"},"title":"How do I prove I stay under 500 km?"},{"richBody":{"value":"Yes, but not if you use the company van exclusively for business purposes, leave it at the business premises outside working hours, or have submitted a declaration to the tax authorities. For modified vans, a separate scheme may apply based on the number of private kilometres driven.
"},"title":"Does bijtelling also apply to vans?"},{"richBody":{"value":"You pay bijtelling on the current market value, which often saves a lot.
Note: there is a proposed law with a start date of 1 January 2027 that may make the youngtimer scheme less attractive.
"},"title":"What is the advantage of a youngtimer?"},{"richBody":{"value":"Yes, in some situations you may be able to reduce or avoid the benefit-in-kind tax on a company car. If you drive no more than 500 private kilometres per year in your company car, you will generally not have to pay benefit-in-kind tax. However, you must be able to demonstrate this, for example with a complete and accurate mileage log. The Dutch Tax Administration may also impose additional conditions.
The amount of benefit-in-kind tax you pay can also depend on the type of vehicle you drive. For some fully electric vehicles, a lower benefit-in-kind rate may apply to part of the vehicle’s list price, subject to certain conditions. As a result, the benefit-in-kind charge may be lower than for other types of company cars.
The most suitable vehicle or mobility solution will depend on your personal, business and tax circumstances. It is therefore important to ensure you have the right information before making a decision.
Please note: Benefit-in-kind rules and tax rates may change over time. The actual impact will depend on factors such as the type of vehicle, the number of private kilometres driven and your individual tax circumstances. If you are unsure, consult a tax adviser or the Dutch Tax Administration.
"},"title":"Are there ways to reduce benefit-in-kind tax (bijtelling)?"}],"componentType":"accordion"},{"componentStyle":"default","componentType":"linkList","iconTitle":{"title":"Also interesting for you"},"textLinks":[{"text":"Everything for your company vehicle","url":"/en/business/insurance/company-vehicle"},{"text":"What insurances do I need as self-employed?","url":"/en/business/insurance/insurance-self-employed"},{"text":"All business insurances","url":"/en/business/insurance"},{"text":"More tips for the self-employed","url":"/en/business/self-employed"}]}]},"hasMacro":false,"id":"cd1b9802-3fb9-4196-91e9-955725202a06","localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"Insurance for your company car","url":"/en/business/insurance/company-vehicle"}},"componentType":"productHeader","coreHeader":{"body":"A company car or van is super convenient. As an entrepreneur or freelancer, you’re often on the move. For entrepreneurs, 'addition', in Dutch known as bijtelling doesn’t work like it does for employees via payroll tax, but as a correction on car expenses in your profit calculation. What exactly is it? How does it work? And how do you avoid paying more than necessary?","headerImage":{"extension":"jpg","original":"https://assets.ing.com/m/7aaf79bf6f5a8f5c/original/Young-girl-in-sunglasses-driving-a-car.jpg","transformBaseUrl":"https://assets.ing.com/transform/ddc9b95e-bc2a-40d0-bc61-038185e2abba/Young-girl-in-sunglasses-driving-a-car","type":"image","width":1920},"title":"Company car – how does additional tax (bijtelling) work?"}},"publishDate":"2026-08-07T16:57:33.952+02:00"}}