Chapter 16 Car taxation

There are three different taxes related to the ownership of a car:

• the tax on entry into service (TES) is a tax paid when a vehicle is registered, no matter whether it is new or used;
• the circulation tax (CT) is a tax paid annually for each vehicle owned;
• the additional circulation tax (ACT) is an annual tax on LPG vehicles whose amount depends on fiscal power.⁵⁷

Note that there is a bonus for new zero-emission vehicles in the Flemish Region, although it is abolished at the end of 2020.

16.1 Tax on entry into service (TES)

The tax on entry into service (TES) is a tax paid when a vehicle is registered, no matter whether it is new or used. For leased vehicles, the rules are the same across regions. For vehicles not leased, each region has determined its own rules.

16.1.1 Leased vehicles

The amount depends on fiscal power (FP), engine power (in kW) and vehicle age (in fully elapsed years). If the fiscal power does not correspond to the engine power, the higher amount is retained.⁵⁸ The amounts of TES for cars depending on their age and fiscal/engine power are given in Tables 16.1, 16.2 and 16.3.

Table 16.1: TES (in €) for cars no older than 5 years

Fiscal power	Engine power	0 years	1 year	2 years	3 years	4 years	5 years
FP \(\leq\) 8	kW \(\leq\) 70	61.5	61.5	61.5	61.5	61.5	61.5
9 \(\leq\) FP \(\leq\) 10	70 \(\lt\) kW \(\leq\) 85	123.0	110.7	98.4	86.1	73.8	67.7
FP \(=\) 11	85 \(\lt\) kW \(\leq\) 100	495.0	445.5	396.0	346.5	297.0	272.2
12 \(\leq\) FP \(\leq\) 14	100 \(\lt\) kW \(\leq\) 110	867.0	780.3	693.6	606.9	520.2	476.9
FP \(=\) 15	110 \(\lt\) kW \(\leq\) 120	1239.0	1115.1	991.2	867.3	743.4	681.5
16 \(\leq\) FP \(\leq\) 17	120 \(\lt\) kW \(\leq\) 155	2478.0	2230.2	1982.4	1734.6	1486.8	1362.9
FP \(\gt\) 17	kW \(\gt\) 155	4957.0	4461.3	3965.6	3469.9	2974.2	2726.3

Table 16.2: TES (in €) for cars with age between 6 and 10 years

Fiscal power	Engine power	6 years	7 years	8 years	9 years	10 years
FP \(\leq\) 8	kW \(\leq\) 70	61.5	61.5	61.5	61.5	61.5
9 \(\leq\) FP \(\leq\) 10	70 \(\lt\) kW \(\leq\) 85	61.5	61.5	61.5	61.5	61.5
FP \(=\) 11	85 \(\lt\) kW \(\leq\) 100	247.5	222.8	198.0	173.2	148.5
12 \(\leq\) FP \(\leq\) 14	100 \(\lt\) kW \(\leq\) 110	433.5	390.1	346.8	303.4	260.1
FP \(=\) 15	110 \(\lt\) kW \(\leq\) 120	619.5	557.5	495.6	433.6	371.7
16 \(\leq\) FP \(\leq\) 17	120 \(\lt\) kW \(\leq\) 155	1239.0	1115.1	991.2	867.3	743.4
FP \(\gt\) 17	kW \(\gt\) 155	2478.5	2230.7	1982.8	1735.0	1487.1

Table 16.3: TES (in €) for cars older than 10 years

Fiscal power	Engine power	11 years	12 years	13 years	14 years	15 or more
FP \(\leq\) 8	kW \(\leq\) 70	61.5	61.5	61.5	61.5	61.5
9 \(\leq\) FP \(\leq\) 10	70 \(\lt\) kW \(\leq\) 85	61.5	61.5	61.5	61.5	61.5
FP \(=\) 11	85 \(\lt\) kW \(\leq\) 100	123.8	99.0	74.2	61.5	61.5
12 \(\leq\) FP \(\leq\) 14	100 \(\lt\) kW \(\leq\) 110	216.8	173.4	130.1	86.7	61.5
FP \(=\) 15	110 \(\lt\) kW \(\leq\) 120	309.8	247.8	185.8	123.9	61.5
16 \(\leq\) FP \(\leq\) 17	120 \(\lt\) kW \(\leq\) 155	619.5	495.6	371.7	247.8	61.5
FP \(\gt\) 17	kW \(\gt\) 155	1239.2	991.4	743.5	495.7	61.5

LPG vehicles

The amount is lower for LPG vehicles in most cases (maximum difference: €298). The actual amounts of TES for LPG vehicles depending on their age and fiscal/engine power are given in Tables 16.4, 16.5 and 16.6.

Table 16.4: TES (in €) for LPG cars no older than 5 years

Fiscal power	Engine power	0 years	1 year	2 years	3 years	4 years	5 years
FP \(\leq\) 8	kW \(\leq\) 70	0	61.5	61.5	61.5	61.5	61.5
9 \(\leq\) FP \(\leq\) 10	70 \(\lt\) kW \(\leq\) 85	0	61.5	61.5	61.5	61.5	61.5
FP \(=\) 11	85 \(\lt\) kW \(\leq\) 100	197	177.3	157.6	137.9	118.2	108.3
12 \(\leq\) FP \(\leq\) 14	100 \(\lt\) kW \(\leq\) 110	569	512.1	455.2	398.3	341.4	312.9
FP \(=\) 15	110 \(\lt\) kW \(\leq\) 120	941	846.9	752.8	658.7	564.6	517.5
16 \(\leq\) FP \(\leq\) 17	120 \(\lt\) kW \(\leq\) 155	2180	1962.0	1744.0	1526.0	1308.0	1199.0
FP \(\gt\) 17	kW \(\gt\) 155	4659	4193.1	3727.2	3261.3	2795.4	2562.4

Table 16.5: TES (in €) for LPG cars with age between 6 and 10 years

Fiscal power	Engine power	6 years	7 years	8 years	9 years	10 years
FP \(\leq\) 8	kW \(\leq\) 70	61.5	61.5	61.5	61.5	61.5
9 \(\leq\) FP \(\leq\) 10	70 \(\lt\) kW \(\leq\) 85	61.5	61.5	61.5	61.5	61.5
FP \(=\) 11	85 \(\lt\) kW \(\leq\) 100	98.5	88.7	78.8	69.0	61.5
12 \(\leq\) FP \(\leq\) 14	100 \(\lt\) kW \(\leq\) 110	284.5	256.1	227.6	199.2	170.7
FP \(=\) 15	110 \(\lt\) kW \(\leq\) 120	470.5	423.4	376.4	329.4	282.3
16 \(\leq\) FP \(\leq\) 17	120 \(\lt\) kW \(\leq\) 155	1090.0	981.0	872.0	763.0	654.0
FP \(\gt\) 17	kW \(\gt\) 155	2329.5	2096.6	1863.6	1630.7	1397.7

Table 16.6: TES (in €) for LPG cars older than 10 years

Fiscal power	Engine power	11 years	12 years	13 years	14 years	15 or more
FP \(\leq\) 8	kW \(\leq\) 70	61.5	61.5	61.5	61.5	61.5
9 \(\leq\) FP \(\leq\) 10	70 \(\lt\) kW \(\leq\) 85	61.5	61.5	61.5	61.5	61.5
FP \(=\) 11	85 \(\lt\) kW \(\leq\) 100	61.5	61.5	61.5	61.5	61.5
12 \(\leq\) FP \(\leq\) 14	100 \(\lt\) kW \(\leq\) 110	142.2	113.8	85.3	61.5	61.5
FP \(=\) 15	110 \(\lt\) kW \(\leq\) 120	235.2	188.2	141.2	94.1	61.5
16 \(\leq\) FP \(\leq\) 17	120 \(\lt\) kW \(\leq\) 155	545.0	436.0	327.0	218.0	61.5
FP \(\gt\) 17	kW \(\gt\) 155	1164.8	931.8	698.9	465.9	61.5

Electric vehicles
The amount of TES for electric vehicles is €61.50.

Hybrid vehicles Hybrid vehicles are taxed according to their fiscal/engine power.

16.1.2 Purchased vehicles: Brussels

The rules are the same as for the leased vehicles, as described in Section 16.1.1, with the same special treatments for LPG and electric vehicles.

16.1.3 Purchased vehicles: Flanders

The TES is calculated according to the following formula and should be comprised between €45.56 and €11391.05 (before the special treatments of CNG, electric and old vehicles are applied): \[\hbox{TES} = \left[\left(\frac{CO_2 \times f + x}{246}\right)^6 \times 4500 + c\right] \times LC\] where

• \(CO_2\) is a level of carbon dioxide emissions (in g/km);
• \(f\) is fuel type coefficient (equal to 0.88 for LPG vehicles, 0.93 for CNG vehicles, 0.744 for CNG vehicles that are homologated as gasoline vehicles, and to 1 for other vehicles);
• \(x\) is \(CO_2\) correction in function of technological evolution; \(x\) equals 0 g CO2/km and is increased annually by 4.5 g \(CO_2\)/km from the year 2013. In 2020 it is equal to 36;
• \(c\) is a component for fuel type and Euro norm. Its amounts in € for the period from 01/07/2020 to 30/06/2021 are shown in Table 16.7;
• \(LC\) is a vehicle age coefficient. It’s values are shown in Table 16.8.

Table 16.7: \(c\) component depending on Euro norm and fuel type

Euro norm	Diesel	Other fuel type
Euro 0	3107	1235.7
Euro 1	911	552.6
Euro 2	676	165.2
Euro 3 (without soot filter)	535	103.7
Euro 3 (with soot filter)	507	103.7
Euro 4 (without soot filter)	507	24.9
Euro 4 (with soot filter)	498	24.9
Euro 5	498	22.4
Euro 6	493	22.4

Table 16.8: \(LC\) vehicle age coefficient depending on vehicle age (in fully elapsed years)

Vehicle age	\(LC\) coefficient
0	100%
1	90%
2	80%
3	70%
4	60%
5	50%
6	40%
7	30%
8	20%
\(\geq 9\)	10%

Old vehicles

• For old vehicles (more than 28 years old), the TES is equal to €45.56 (the minimum amount).
  • The threshold for a vehicle to be considered as old will progressively change from 25 to 30 years old.

CNG vehicles

• CNG vehicles that have been registered to DIV before 01/07/2017 are exempted from the TES regardless of the fiscal power.
• CNG vehicles have been registered to DIV after 01/07/2017 with a fiscal power of maximum 11 are exempted from the TES.
• Other CNG vehicles benefit from a €4000 reduction.
  • According to the simulator available on the website of the Flemish Region, the €4000 reduction is not indexed.
  • This reduction is not applied to the minimum tax.
• These rules apply until 31/12/2020.

Electric and plug-in hybrid vehicles

• Electric and plug-in hybrid vehicles that emit maximum 50g CO2/km are exempted from the TES until 31/12/2020.

16.1.4 Purchased vehicles: Wallonia

The base amount of TES is computed in the same way as for leased vehicles (see Tables 16.1, 16.2 and 16.3). The same special rules for LPG, electric and hybrid vehicles apply. An eco-malus is added for vehicles with \({CO_2}\) emissions greater than 145 g/km. The values of eco-malus are given in the Table 16.9:

Table 16.9: Eco-malus (in €) depending on the carbon dioxide emissions (in g/km)

\(CO_2\) emissions	Eco-malus
e \(\leq\) 145	0
145 \(\lt\) e \(\leq\) 155	100
155 \(\lt\) e \(\leq\) 165	175
165 \(\lt\) e \(\leq\) 175	250
175 \(\lt\) e \(\leq\) 185	375
185 \(\lt\) e \(\leq\) 195	500
195 \(\lt\) e \(\leq\) 205	600
205 \(\lt\) e \(\leq\) 215	700
215 \(\lt\) e \(\leq\) 225	1000
225 \(\lt\) e \(\leq\) 235	1200
235 \(\lt\) e \(\leq\) 245	1500
245 \(\lt\) e \(\leq\) 255	2000
e \(\gt\) 255	2500

• For households with at least 4 dependent children (<25 years old), there is an adjustment of two categories (only applies if the vehicle emits no more than 226 g of \({CO_2}\)/km).⁵⁹
• For households with 3 dependent children (<25 years old), there is an adjustment of one category (only applies if the vehicle emits no more than 226 g of \({CO_2}\)/km).
• For LPG vehicles, there is an adjustment of one category, regardless of the level of carbon dioxide emissions.
• CNG vehicles are exempted from the eco-malus.
• Vehicles that are more than 30 years old and have an oldtimer licence plate are exempted from the eco-malus.

16.2 Circulation tax (CT)

The circulation tax (CT) is a tax paid annually for each vehicle. Its amount varies depending on the region where the owner lives. The base amount of the CT is calculated on the basis of the fiscal power (see Table 16.10). The only exception is in Flanders, where the vehicles purchased after 2015 are subject to the groene verkeersbelasting (i.e. the “green circulation tax”, see Section 16.2.1).

Table 16.10: Base amount of the CT (in €). In Flanders, it includes a 10% local surcharge.

Fiscal power	Wallonia and BCR	Flanders
4	84	84
5	105	105
6	152	152
7	198	198
8	245	245
9	292	292
10	339	339
11	440	440
12	540	540
13	641	641
14	742	742
15	843	843
16	1104	1104
17	1365	1365
18	1626	1626
19	1887	1887
20	2148	2148
21	2266	2265
22	2383	2382
23	2500	2499
24	2617	2616
25	2734	2733
26	2852	2851
27	2969	2968
28	3086	3085
29	3203	3202
30	3320	3319
31	3438	3436
32	3555	3553
33	3672	3670
34	3789	3787
35	3907	3904
36	4024	4021
37	4141	4138
38	4258	4255
39	4375	4373
40	4493	4490

Electric and hybrid vehicles

• In Flanders, electric and plug-in hybrid vehicles that emit maximum 50g \({CO_2}\)/km are exempted from the CT until 31/12/2020.
• In Brussels and Wallonia, for electric vehicles the minimum amount (€83.56) applies. Hybrid vehicles are taxed according to their fiscal/engine power.

Old vehicles

• CT for old vehicles amounts to €38.08
  • in all three regions for leased vehicles older than 25 years
  • for purchased vehicles in the Brussels Capital Region older than 25 years
  • for purchased vehicles in Walloon Region older than 30 years
• For purchased vehicles in Flemish region see the relevant section below.

16.2.1 Flanders: vehicles purchased after 2015

For all vehicles registered before 01/01/2016 the base CT amount applies (see Table (tab:17-table10)).

In Flanders, the passenger cars, dual-purpose cars and minibuses which have been purchased and registered after 01/01/2016 are subject to the groene verkeersbelasting (i.e. “green circulation tax”). The amount to be paid is calculated on the basis of the fiscal power (as in Table 16.10), which is adjusted using the following formula: \[\hbox{CT} = CT_B \times (1 + A_{CO_2} + A_{Euro}),\]

where

• \(CT_B\) is the base CT amount determined on the basis of fiscal power (see Table 16.10);
• \(A_{CO_2} = 0.003 \times (CO_2 - 122)\), where \(CO_2\) is the level of carbon dioxide emissions, ranging between 24 and 500 g/km;
• \(A_{Euro}\) depends on fuel type and Euro norm given in Table 16.11.

The minimum amount of the CT is €47.74 (before the rules of special treatment of LPG, CNG, electric and old vehicles are applied). This does not apply to LPG vehicles.

Table 16.11: \(A_{Euro}\) values

Euro norm	Diesel	Other fuel type
Euro 0	0.500	0.300
Euro 1	0.400	0.100
Euro 2	0.350	0.050
Euro 3 (without soot filter)	0.300	0.000
Euro 3 (with soot filter)	0.250	0.000
Euro 4 (without soot filter)	0.250	-0.125
Euro 4 (with soot filter)	0.175	-0.125
Euro 5	0.175	-0.150
Euro 6	0.150	-0.150

Old vehicles

• €38.08 € if the vehicle is more than 28 years old (in 2020) (before the rules for LPG, CNG and electric vehicles are applied).
  • The threshold for a vehicle to be eligible will progressively change from 25 to 30 years old.

LPG vehicles

• Reduction of €119.33 (€108.48 without the 10% local surcharge).
  • If the reduction is granted, the minimum tax does not apply.

CNG vehicles

• CNG vehicles that have been registered to DIV before 01/07/2017 are exempted from the CT regardless of the fiscal power.
• CNG vehicles have been registered to DIV after 01/07/2017 with a fiscal power of maximum 11 are exempted from the CT.
• Other CNG vehicles benefit from a €4000 reduction.
  • According to the simulator available on the website of the Flemish Region, the €4000 reduction is not indexed.
  • This reduction is not applied to the minimum tax.
• These rules apply until 31/12/2020.

Electric and plug-in hybrid vehicles

• Electric and plug-in hybrid vehicles that emit maximum 50g CO2/km are exempted from the CT until 31/12/2020.

16.3 Additional circulation tax (ACT)

The additional circulation tax (ACT) is an annual tax on LPG vehicles whose amount depends on fiscal power.

Table 16.12: Additional circulation tax depending on fiscal power

Fiscal power	ACT
FP \(\leq\) 7	89.2
8 \(\leq\) FP \(\leq\) 13	148.7
FP \(\geq\) 14	208.2

16.4 Bonus for new zero-emission vehicles in Flanders

This bonus applies to new zero-emission vehicles that are registered in the Flemish Region. Its amount depends on the catalog value of the vehicle (including VAT), see Table 16.13. It will be abolished in 2020.

Table 16.13: Amount of the bonus for new zero-emission vehicles

Catalog value	Bonus in euros
c \(\lt\) 31 000	4000
31 000 \(\leq\) c \(\lt\) 41 000	3500
41 000 \(\leq\) c \(\lt\) 61 000	2500
c \(\geq\) 61 000	2000

Other conditions for eligibility

• Only private cars are eligible for this bonus.⁶⁰ Whether they are leased or not does not matter.
• The vehicle has to be kept at least 3 years. Otherwise, the bonus has to be refunded.
• Date of registration to DIV:
  • Leased vehicles: between 03/08/2017 and 31/10/2020⁶¹
  • Vehicles not leased: between 01/01/2016 and 31/10/2020⁶²

16.5 Company car taxation

Company cars affect taxation through personal income tax (PIT), corporate income tax (CIT), value-added tax (VAT) and social security contributions.

16.5.1 Personal income tax

The tax value of the company car fringe benefit (\(ATN\)) depends on the catalog value of the vehicle, its age, its fuel type and its level of carbon dioxide emissions. It is calculated according to the basic formula: \[ATN = CV \times \frac{6}{7} \times AC \times CDC\] where

• \(CV\) is a catalog value of the vehicle as new, including VAT;
• \(AC\) is an age coefficient given in Table 16.14 (see below);
• \(CDC\) is a carbon dioxide coefficient calculated according to the following formula: \[CDC = 0.055 + 0.001 \times (e - r)\] where
  • \(e\) is a level of carbon dioxide emissions (in g/km);
  • \(r\) is a reference level of carbon dioxide emissions, which is 88 g/km for diesel vehicles and 107 g/km for other vehicles.
• \(CDC\) equals to 0.04 (minimum value) for electric vehicles regardless of carbon dioxide emissions.
• \(CDC\) must be comprised between 0.04 and 0.18.

Table 16.14: AC vehicle age coefficient

Vehicle age (in months)	Age coefficient
a \(\leq\) 12	1.00
12 \(\lt\) a \(\leq\) 24	0.94
24 \(\lt\) a \(\leq\) 36	0.88
36 \(\lt\) a \(\leq\) 48	0.82
48 \(\lt\) a \(\leq\) 60	0.76
a \(\gt\) 60	0.70

Financial contribution paid by the employee or the company manager

• The financial contribution paid by the employee or the company manager for the provision of a company car can be deducted from the tax value of the fringe benefit, but the latter cannot become negative as a result.

Minimum

• The tax value of the company car fringe benefit cannot fall below €1340 (except when paid financial contribution is deducted).

16.5.2 Social security contributions

For employees, the company car fringe benefit gives rise to a solidarity contribution whose annual amount depends on carbon dioxide emissions and fuel type (see below). For company managers, the tax value of the company car fringe benefit (\(ATN\)) is subject to ordinary social contributions.⁶³

Basic formula (before indexation) \[Solidarity\:contribution = 9 \times e-r\] where

• \(e\) is a level of carbon dioxide emissions (in g/km);
• \(r\) is a reduction whose amount depends on fuel type:
  • €600 for diesel vehicles;
  • €768 for gasoline vehicles;
  • €990 for LPG and CNG vehicles.

Electric vehicles (before indexation)

• Solidarity contribution for electric vehicles amounts to €20.83/month (minimum amount).

Minimum (before indexation)

• Solidarity contribution cannot fall below €20.83/month.

Indexation \[ Solidarity\:contribution=solidarity\:contribution\:before\:indexation \times \frac{147.73}{114.08}\]

16.5.3 Corporate income tax

We describe the corporate income tax treatment of car and fuel expenses after the reform (from 01/01/2020).

16.5.3.1 Car expenses

Car expenses: all car expenses, including ownership taxes, non-recoverable VAT and 70% of the reimbursement of business trips made by employees and company managers. A distinction is made between car expenses that are eligible for a full deduction and other car expenses.

Eligible car expenses (in principle related to private trips) are fully deductible. Eligible car expenses are equal to 70% of the tax value of the company car fringe benefit (obviously, they cannot exceed car expenses). When no company car is provided (for instance, when business trips are reimbursed), car expenses are not eligible for a full deduction.

Other car expenses (in principle related to business trips) are deductible at a rate that depends on fuel type and carbon dioxide emissions. The rules differ before and after the corporate income tax reform.

The deductibility rate is calculated according to the following formula: \[Deductibility\:rate = 1.2 - 0.005 \times f \times e\]

• where
  • \(f\) is a fuel type coefficient equal to 1 for diesel vehicles, 0.95 for gasoline and LPG vehicles and 0.9 for CNG vehicles;
  • \(e\) is a level of carbon dioxide emissions (in g/km).
• The deductibility rate of car expenses must be comprised between 50% and 100% (before the rules below are applied).
• For vehicles that emit at least 200 g of carbon dioxide per km, the deductibility rate is set to 40%.
• For electric vehicles, the deductibility rate is set to 100%.

16.5.3.2 Fuel expenses

Fuel expenses: all fuel expenses, including non-recoverable VAT and 30% of the reimbursement of business trips made by employees and company managers (100% when the employee or the company manager only pays fuel because he or she is provided with a company car). A distinction is made between fuel expenses that are eligible for a full deduction and other fuel expenses.

Eligible fuel expenses (in principle related to private trips) are fully deductible. Eligible fuel expenses are equal to 30% of the tax value of the company car fringe benefit (obviously, they cannot exceed fuel expenses). When no company car is provided (for instance, when business trips are reimbursed), fuel expenses are not eligible for a full deduction.

For other fuel expenses (in principle related to business trips), the rules differ before and after the corporate income tax reform.

After the reform (from 01/01/2020)

• The deductibility rate of other fuel expenses is aligned with the deductibility rate of other car expenses (see above).

16.5.3.3 Disallowable expenses

An amount is added to the corporate income tax base when a company car is provided:

• when a fuel card is provided, disallowable expenses are set to 40% of the tax value of the company car fringe benefit (as determined before the deduction of the financial contribution paid by the employee or the company manager);
• when no fuel card is provided, disallowable expenses are set to 17% of the tax value of the company car fringe benefit (as determined before the deduction of the financial contribution paid by the employee or the company manager).

16.5.3.4 Other expenses

Other expenses are fully deductible for corporate income tax purposes:

• the financial contribution paid by the employee or the company manager and the bonus for a new zero-emission vehicle in the Flemish Region are fully added to the corporate income tax base;
• the solidarity contribution is fully deductible.

16.5.4 Value-added tax

Part of the VAT paid on car and fuel expenses can be recovered by entities subject to VAT. The share of recoverable VAT can be determined by three different methods. The entity can choose whichever method it prefers.

Method 1

• The share of recoverable VAT is equal to the share of business trips (in terms of mileage).⁶⁴

Method 2

\[Share\:of\:recoverable\:VAT = 1 - \frac{km_{HW} \times 2 \times 200 + 6 000}{km_T}\] where

• \(km_{HW}\) is a distance between home and work (in km);
• \(km_T\) is a total annual mileage of the company car (in km).

Method 3

• The share of recoverable VAT is set to 35%.

Maximum

• The share of recoverable VAT cannot exceed 50%.

16.6 SmartMove

SmartMove is an intelligent kilometre charge for all passenger and delivery vehicles circulating in the Brussels-Capital region (BCR). The charge do not apply to the kilometres driven on the motorways and it is computed as follows: \[Pk = (Pb \times Cf) + Ck,\] where \(Pk\) is the tax that is due, which consists of 2 components:

1. \(Pb \times Cf\) is a daily amount that is due if a driver enters the taxable area, where:
   • \(Pb\) is the base component, which varies with the time of car use (in case of car use in different periods, the driver pays for the period with the highest congestion):
     • Peak hours (on week days 7:00 to 10:00, and 15:00 to 19:00): tariff is \(Pb(I) = 1\);
     • Off-peak hours (10:00 to 15:00, and 19:00 to 21:00): \(Pb(II) = 0.5\);
     • Nights (on week days 21:00 to 7:00), holidays and weekends: \(Pb(III) = 0\).
   • \(Cf\) is a function of the fiscal horsepower of the car (see Table 16.15). For electric vehicles, one applies the lowest multiplier. For hybrid vehicles, one considers only the cylinder capacity of the combustion engine.
2. \(Ck = Mb \times Km\) is the kilometre price, which depends on the number of kilometres driven in the taxable area, where:
   • \(Mb\) depends of the time of car use:
     • Peak hours (on week days 7:00 to 10:00, and 15:00 to 19:00): \(Mb(I) = 0.18\);
     • Off-peak hours (on week days 10:00 to 15:00, and 19:00 to 21:00): \(Mb(II) = 0.09\);
     • Nights (on week days 21:00 to 7:00), holidays and weekends: \(Mb(III) = 0\).
   • \(Km = km \times (100 \% - Corr)\) is the adjusted number of kilometers driven in the taxable area, where:
     • \(km\) is the number of kilometers driven on the given day;
     • \(Corr\) is a correction factor of 1.5%.

Table 16.15: Coefficient \(Cf\)

Fiscal power	\(Cf\)
FP \(\leq\) 7	0
FP \(=\) 8	1
9 \(\leq\) FP \(\leq\) 10	2
FP \(=\) 11	3
12 \(\leq\) FP \(\leq\) 15	4
16 \(\leq\) FP \(\leq\) 20	5
FP \(\gt\) 20	6

It is also possible to buy a daypass. Its price changes depending on the number of the daypass bought in total (see Table 16.16):

Table 16.16: Price (in €) of the daypass

Number of “daypass” bought	Price
\(n \lt 50\)	10
\(50 \geq n \lt 100\)	15
\(n \geq 100\)	20

16.7 Modelling Assumptions

• Although we listed rules for leased vehicles, these in principle should not concern ordinary individuals because “private leasing” is a rent of a car from a leasing company for a fixed monthly payment. Therefore, the car is registered on the name of the leasing company, which should pay all taxes. However, the fixed monthly payment that lessee makes includes these taxes and therefore these are implicitly paid by lessee.
• We have focused on ordinary vehicles. Different rules apply to non-ordinary vehicles (véhicules utilitaires).
• We have not considered the specific treatment that applies to disabled individuals
• Remaining questions and uncertainties:
  • Not clear whether it is possible to register a leased vehicle to the name of its user. If this is the case, ownership taxes would be determined on the basis of the rules that apply for vehicles not leased in the region in which the user lives instead of the rules that apply for leased vehicles in the region in which the leasing company is established.
  • I didn’t find on which legal basis electric vehicles benefit from a special treatment for the TES and the CT.⁶⁵ It might be that this results from a purely administrative application of the law.
  • LPG vehicles that are less than 1 year old seem not to be subject to the minimum amount of the TES (€61.50). This should be verified.

16.8 Module input

16.8.1 Variables

16.8.2 Parameters

16.9 Module output

16.10 References

[] Bruxelles Fiscalité - Taxes de circulation. Bruxelles Fiscalité, 2020. URL: https://fiscalite.brussels/taxes-de-circulation.

[] Mon-assurance-auto.be - Taxe de mise en circulation auto 2020 - 2021. 2020. URL: https://www.mon-assurance-auto.be/taxes/taxe-mise-en-circulation-belgique.html.

[] Vlaamse Overheid - Verkeersbelastingen. 2020. URL: https://www.vlaanderen.be/uw-overheid/werking-en-structuur/hoe-werkt-de-vlaamse-overheid/belastingen-en-begroting/vlaamse-belastingen/verkeersbelastingen.

[] Wallonie - Taxes liées aux véhicules. 2020. URL: https://www.wallonie.be/fr/decouvrir-la-wallonie/la-wallonie-en-chiffres/fiscalite-wallonne/taxes-vehicules.

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57. Fiscal power is a ‘fiscal’ engine capacity of the vehicle, a fiscal rating based on cylinder capacity on the vehicle’s motor. In Belgium, the tax power depends on the cubic capacity of the engine in cubic centimeters at the rate of 1 tax horsepower for every 200 cm3.↩︎

58. Example: fiscal power of 11, engine power of 80 kW and vehicle age between 2 and 3 years: €396.↩︎

59. By adjustment of \(n\) categories is meant that after adjustment the eco-malus will be taken from a lower category (with lower eco-malus), which is by \(n\) categories higher in the Table 16.9. Example: in chase of adjustment of 2 categories, if a vehicle emits 180 g of \({CO_2}\)/km, the eco-malus is equal to €175 instead of €375.↩︎

60. There are some exceptions to this rule: non-profit organisations, car-sharing providers, taxi licence holders and self-employed individuals.↩︎

61. To be eligible, vehicles must also be ordered no later than 31/12/2019.↩︎

62. Ibid.↩︎

63. Note that for company managers (affiliated to INASTI), ordinary social contributions are not computed on the same basis as for employees (affiliated to ONSS).↩︎

64. Commuting trips are not considered as business trips.↩︎

65. With the exception of vehicles not leased in the Flemish Region.↩︎