Since 2008, CO² emissions determine the tax burden of a company car. Because the tax deductibility, employer contributions CO² and employee benefits are calculated based on these emissions, fleet managers have interest to keep up with new models and policy engine of car manufacturers.

The variable tax deductibility of company cars based on CO² emissions has been implemented since 1 April 2008 for all company cars (except vehicles and independent professionals whose income is subject to the individual income tax. For them, a tax-deductible automobile costs is about 75% in 2011). To determine the level of deductibility of a model car, federal authorities have identified a number of limitations based on CO² emissions.

Different CO² limits and the percentage of tax deductibility applies to the year 2011 are summarized below in a table. For each category, Fleet & Business selected a number of car models. It appears here that the manufacturers have done their best to reduce CO² emissions from new models and engines. A crucial data that fleet managers should seriously consider.

More than ever, an updated selection of cars will have a significant impact on optimizing the costs of the fleet. If we take only the category of vehicles to 90% tax deductible, we find that it has expanded considerably during the past year. There are even midrange vehicles like the Audi A3, CT Lexus 200, the SEAT Leon, the Volvo S 40 and the VW Golf with a wide range of compact cars and minivans like the Renault Clio Grand Tour.

Also note that the tax burden of company cars will depend, in the near future, even more on CO² emissions. In the short term, the TMC and road tax will integrate the effect of CO² emissions into their formula.

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