Executive taxed on a BIK
For self-employed individuals operating as sole proprietors, when mixed expenses (private and professional) are included in the accounts, a business use percentage is applied. This is the case, for example, for a motorcycle or a vehicle.
For self-employed individuals operating through a company: 100% of expenses are recorded in the company, and private use is taxed at the executive level via a BIK (Benefit in Kind).
No flat rate – Actual costs multiplied by private use
The BIK for a car is calculated on a flat-rate basis, according to a formula defined by the tax authorities (based on the catalogue value and CO2 emission rate).
For utility vehicles and motorcycles, there is no formula or flat rate. The BIK is therefore assessed on the basis of actual costs, multiplied by the percentage of private use.
In practice:
1️⃣ Determine the total annual cost of the vehicle (depreciation, insurance, maintenance, fuel, etc.)
2️⃣ Calculate the percentage of private use (100% – business use percentage)
3️⃣ Taxable BIK = total cost × percentage of private use.
👉 Your company has €6,000 in expenses for a motorcycle (depreciation, maintenance, fuel, insurance, etc.) made available to you. Your usage is 75% private (personal trips + home-to-workplace journeys). Therefore, the taxable BIK = €6,000 × 75% = €4,500. This amount is added to your taxable income as an individual and subject to social contributions.
💡 What about VAT? It is recoverable up to the percentage of professional use (no 50% limit as applies to cars).
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