International Supplement 2005 News – Fleet policies for Belgium change

Many organisations with Belgium-based staff are expected to review their company car policies after the Belgian government increased social security contributions on company cars. Previously, employers had to pay a social security contribution of 33% of the employee benefit, calculated on the horsepower of the car and the number of personal kilometres driven by the employee. However, now the contribution is a lump sum amount per month based on the level of the car’s CO2 emissions. This means that private mileage and the contribution borne by the employee are no longer calculated towards the tax bill. Machteld van Opstal, a member of the employment, pensions and benefits (EPB) practice group at Freshfields Bruckhaus Deringer’s Brussels office, said that the change came as a result of the Belgian government’s drive to increase social security funds. She added that it also wanted to cut down on the number of company cars handed out because of their effect on the environment.