The Netherlands will introduce a new tax surcharge on company cars powered by internal combustion engines and hybrid drivetrains from January 1, 2027, in a move aimed at accelerating the transition to battery-electric vehicles.
Under the measure, employers leasing new non-electric company cars will be required to pay a monthly levy equivalent to 1% of the vehicle’s official list price. The surcharge will apply to newly signed lease contracts from the start of 2027 and will be paid directly by employers.
For example, a petrol or hybrid vehicle with a list price of €35,000 would incur an additional monthly charge of €350.
The Dutch government is implementing the measure through a mechanism known as “pseudo-final taxation” (Pseudo-eindheffing). The levy will apply to passenger vehicles with carbon dioxide emissions above zero grams per kilometre, effectively covering all non-battery-electric cars.
The surcharge will be imposed in addition to the existing taxable benefit that employees pay when using company vehicles for private purposes.
Employers will not be permitted to pass the additional cost on to employees, meaning the financial burden will remain entirely with the company.
The measure includes exemptions for light commercial vehicles and for passenger cars used exclusively for business purposes. To qualify for the latter exemption, private use must be explicitly prohibited and monitored.
Industry representatives have expressed concerns about the potential impact on employers’ mobility budgets and fleet policies.
“The levy could have major consequences for organizations’ mobility policies and could lead to substantial additional financial burdens,” Renate Hemerik, Chair of the Dutch Association of Car Leasing Companies (VNA), told Dutch broadcaster NOS.
The new surcharge is expected to affect companies that continue to offer petrol or hybrid company cars, particularly small and medium-sized enterprises.
According to a survey cited by NOS, many large employers in the Netherlands already restrict company car choices to battery-electric vehicles. However, numerous smaller businesses continue to permit employees to lease conventional combustion-engine vehicles.
The Dutch government has also outlined plans to broaden the scope of the surcharge over time. While the measure will initially apply only to lease contracts signed on or after January 1, 2027, it is scheduled to be extended to vehicles leased under older contracts beginning in September 2030.
The policy forms part of broader efforts by the Netherlands to reduce transport-sector emissions and increase the share of battery-electric vehicles in corporate fleets, which represent a significant portion of new vehicle registrations in the country.
Source: nltimes.nl
