Conditions

• Beneficiaries:
  • employees who receive company cars from their employers;
  • both residents and non-residents.
• Applicable to those opting for assessment based on a flat-rate benefit in kind. (It is still possible to assess the benefit in kind based on the cost per kilometer.) 
• Company cars in category M1 that are owned, rented, or leased by the employer and placed at the disposal of the employee, at least in part, for non-professional purposes (see table)
• Tax exemptionfor bicycles and pedelecs25 that belong to or are rented or leased by the employer and made available by the employer to the employee for non-professional purposes, at least in part.
• The percentage of benefit in kind to declare for company cars is based on the total acquisition price of a new vehicle (*)..
• A tax benefit on the residual value for vehicles, calculated on the basis of a 1.5% flat rate deduction of the monthly value (fiction), regardless of the value applied (0.5% - 1.8%). For bicycles and pedelecs25: residual value does not apply due to the tax exemption of the benefit in kind. 
• Applies to new contracts entered as from January 1, 2017.
• The vehicle license certificate and the certificate of conformity of an automobile (COC) must accompany the application.

=> Refer to the 23 December 2016 Grand-Ducal Regulation implementing Article 104(3) of the amended Law on Income Tax of the 4 December 1967..

(*) including options and VAT minus any discounts, if applicable.