Executive Taxed on a BIK
For self-employed individuals, when mixed expenses (private and business) are included in the accounting, a professional portion is applied. This is the case, for example, with a motorcycle or a vehicle.
For self-employed individuals in a company: 100% of the expenses are included in the company, and private use is taxed for the executive through a BIK (Benefit in Kind).
No Flat Rate - Actual Expenses Multiplied by Private Use
The BIK of a car is calculated on a flat-rate basis, according to a formula defined by the administration (based on the catalog value and the CO2 emission rate).
For utility vehicles and motorcycles, there is no formula or flat rate. The BIK is therefore assessed based on actual expenses, multiplied by the % of private use.
Specifically:
1️⃣ Determine the total annual cost of the vehicle (depreciation, insurance, maintenance, fuel,...)
2️⃣ Calculate the percentage of private use (100% - professional portion)
3️⃣ Taxable BIK = total cost × percentage of private use.
👉 Your company has €6,000 in expenses for a motorcycle (depreciation, maintenance, fuel, insurance,...) made available. Your usage is 75% (personal trips + home - workplace). Therefore, the taxable BIK = €6,000 × 75% = €4,500. This amount is added to your taxable personal income and subject to social contributions.
💡 And what about VAT? It is recoverable up to the % of professional use (no 50% limit as with a car).
Need help? Find our team live on the chat at the bottom right 😇
See you soon