In September 2025 we already informed you about the introduction of the pseudo final tax as of January 1, 2027 for non-emission free company cars. This measure should accelerate the transition to electric driving and may have significant consequences for employers. In the meantime, we have seen many questions arise from employers regarding the use of pool cars and the shifting of personnel and/or cars between group companies. Time for an update. |
How was it again: when does the pseudo-final tax come into play?
As previously explained, as of 2027 a pseudo-final tax of 12 percent will apply to the list value of fossil passenger cars (including hybrid models) that are also used privately. This will include commuting as private use.
This means that even in situations where a car is ostensibly used exclusively for business purposes, the pseudo final tax may come into play as soon as commuting takes place. Moreover, the levy may already be due as soon as such use occurs for even one day in a calendar month.
For the record: The pseudo final tax is an employer tax, which in principle may not be recovered from the employee.
If you made a company car available to an employee before 2027, a transitional period applies. The tax is then withheld until September 17, 2030 at the latest. The upcoming legislation requires employers to look closely at their existing mobility policies and lease agreements.
So far the main rules. Now let's consider various peculiarities associated with this regulation.
Pool cars: an underestimated risk
In the case of pool cars, vehicles that are alternately used by several employees, the pseudo-final tax quickly seems to apply. After all, as soon as such a car is used for commuting, it is private use.
In addition, the pseudo-final tax may in principle be due over the entire calendar month, even if only limited private use occurs and regardless of which employee uses the car. This makes pool cars potentially costly for tax purposes.
At the same time, not every pool car is automatically taxed. The assessment depends heavily on the actual design of the use and the degree of power of disposition that employees have.
The key: making a car available
The decisive factor is whether a car has been made available to an employee. In principle, this is only the case if an employee has free use of the car.
If the power of disposal remains with the employer and employees use the vehicle exclusively for a specific business assignment, it can be argued that there is no question of provision. In that case, the pseudo-final tax may not apply.
The practice and frameworks within which this takes place are crucial here. If, for example, employees have free access to a pool car or use it outside a strictly organized use, it is more likely to be a case of provision. It is therefore important to properly delineate the use and, where necessary, record and enforce a ban on private use including commuting.
Group transitions: impact on transitional rules
A transitional rule applies to cars made available before Jan. 1, 2027, until Sept. 17, 2030. This regulation is linked to the withholding agent (the employer) and not to the car or the employee.
This means that a transfer of a car to another BV within the group is in principle a new provision, as we interpret the new legislation. As a result, the transitional law may lapse and the pseudo final tax may still apply earlier. This may also play out when an employee with car transfers to another group company. On the other hand, if the same car is used within one BV by another employee, in principle this does not affect the transitional rules. In that case, the existing provision will remain in place.
Damage repair? Tax damage!
And then there is the situation where the employee temporarily brings his company electric car to the garage, for example for maintenance or damage repair. Suppose this employee is temporarily given a gas-guzzling replacement car. That replacement car will then lead to pseudo final taxation for the full month. Meanwhile, this point has also been taken up by a number of MPs from the CDA and VVD. For them, these undesirable effects have been reason to submit a motion (Lower House, session year 2025-2026, 32 140, no. 298). A motion is and remains only a motion, but it does indicate that the proposed scheme in its current form pinches at certain points. It would be nice if the sharp edges of the regulation were removed before it actually goes into effect.
Finally
Employers will need to move as quickly as possible to be prepared for the new pseudo final tax regime. This starts with mapping out (the duration of) the current fleet and the current mobility policy, defining policy towards the (near) future, informing employees where necessary and so on. In doing so, it is also good to determine whether one or more of the situations described above may arise.
If you have any questions in response to this news, please contact us via your relationship manager, by phone at 040 - 2 504 504 or via the contact form below.