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How Fringe Benefit is Calculated

Get a detailed explanation of the calculation, including regulatory rules and recent updates.

Product Team avatar
Written by Product Team
Updated over a week ago

When to apply which calculation method

Method

Contract stipulation date

Supported by Avrios

Flat 30%

Before 01.07.2020

No

CO₂-based

01.07.2020 – 31.12.2024

Yes

Fuel type-based

01.01.2025 onwards

Yes

Taxable Rate based on each method

CO₂-based

Emission Category (g CO₂/km)

Taxable Rate

0 – 60

25%

61 – 160

30%

161 – 190

50%

Over 190

60%

Fuel type-based

Fuel Type

Taxable Rate

Electric

10%

Plug-In Hybrid

20%

Other fuels

50%

Transition clause

Reason:
The transition clause was introduced to allow a smooth change from the more favorable CO₂-based method to the new fuel type-based method introduced in the beginning of 2025.

Application:
You can apply the CO₂-based method for vehicles that meet all of the following:

  • Ordered by 31.12.2024

  • Delivered between 01.01.2025 – 30.06.2025

  • Contract stipulation: 01.01.2025 – 30.06.2025

  • Registration: 01.01.2025 – 30.06.2025

Fallback rule (“Normal Value”)

If none of the above conditions are met, the fallback rule is to apply the "normal value" meaning only the private-use portion of the car’s value is taxed (business use excluded).

Good to Know

  • If the transition rule would normally apply, but the fuel type-based method results in a lower taxable amount (e.g., hybrid or electric), and the registration, contract, and delivery all happened in 2025 → the more favorable fuel type-based rule can be applied.

  • Contract extensions (same employee, same car) → continue under the original tax rule.

  • Reassignments (to a different employee) → treated as a new contract and taxed according to the rules in effect at the time of reassignment.

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