Benefits in Kind in Belgium: Car, Phone and Housing

Benefits in kind (ATN, avantages de toute nature) are a central element of Belgian tax law for company directors and employees. When a company provides its director or staff with goods or a service free of charge, or at a price below its real value, the tax authorities treat this as taxable income. This article details the calculation rules for the main benefits in kind in Belgium: company car, phone and subscription, housing, PC and tablet, heating and electricity.

What is a benefit in kind?

Legal definition

A benefit in kind is defined in Articles 31 and 32 of the 1992 Income Tax Code (CIR 1992) as any advantage obtained other than in cash, granted by the employer or the company to the beneficiary. The benefit in kind is additional taxable remuneration for personal income tax (IPP) purposes.

Core principles

• The benefit in kind is taxed in the hands of the beneficiary (director or employee) as remuneration
• The benefit in kind is valued at its real value to the beneficiary, unless a flat-rate value is set by royal decree
• For the company, the benefit in kind is a disallowed expense (DNA) to the extent it is not reported on a tax form (form 281.10 for employees, 281.20 for directors)
• A separate 100% contribution applies if the benefit in kind is not mentioned on the beneficiary's tax form (Article 219 CIR)

Why benefits in kind are worthwhile

Despite being taxed, benefits in kind remain an attractive remuneration tool because their flat-rate value is often well below the real value of the benefit. The beneficiary enjoys a real advantage greater than the amount on which they are taxed.

Company car benefit in kind: the most common and most advantageous

The calculation formula

The company car benefit in kind is calculated using a flat-rate formula set out in Article 36, para. 2 of the CIR 1992:

Annual benefit in kind = catalogue value x depreciation rate x CO2 coefficient

Let's break down each element:

Catalogue value

The catalogue value is the list price of the new vehicle at first registration, including options and VAT, but excluding any discount or rebate. It is the manufacturer's official list price.

Note: even if you negotiated a discount of 10% or 20%, the benefit in kind is calculated on the full list price. Even for a second-hand vehicle, it is the catalogue value of the equivalent new vehicle that is used.

Depreciation rate (age correction)

The catalogue value is reduced by 6% per year of the vehicle's age, with a floor of 70% of the catalogue value.

CO2 coefficient

The base CO2 coefficient is 5.5% for a reference vehicle emitting 91 g CO2/km (petrol/LPG/CNG) or 91 g CO2/km (diesel). This rate is adjusted as follows:

• For each gram of CO2 above the reference: + 0.1%
• For each gram of CO2 below the reference: – 0.1%
• Absolute minimum: 4% (floor)
• Absolute maximum: 18% (ceiling)

Electric vehicles (0 g CO2)

Fully electric vehicles benefit from the minimum rate of 4%, which makes the benefit in kind very low.

Minimum benefit in kind

The benefit in kind can never be lower than EUR 1,600/year (2026 indexed amount, to be verified each year – approximately EUR 1,600).

Detailed calculation examples

Example 1: BMW 320d (diesel, 130 g CO2, catalogue value EUR 45,000, new vehicle)

• CO2 coefficient: 5.5% + (130 – 91) x 0.1% = 5.5% + 3.9% = 9.4%
• Annual ATN: 45,000 x 100% x 9.4% = EUR 4,230/year = EUR 352.50/month

Example 2: Tesla Model 3 (electric, 0 g CO2, catalogue value EUR 48,000, new vehicle)

• CO2 coefficient: 4% (minimum)
• Annual ATN: 48,000 x 100% x 4% = EUR 1,920/year = EUR 160/month

Example 3: VW Golf 1.5 TSI (petrol, 120 g CO2, catalogue value EUR 32,000, 3-year-old vehicle)

• CO2 coefficient: 5.5% + (120 – 91) x 0.1% = 5.5% + 2.9% = 8.4%
• Annual ATN: 32,000 x 88% x 8.4% = 28,160 x 8.4% = EUR 2,365.44/year = EUR 197.12/month

Example 4: Dacia Spring (electric, 0 g CO2, catalogue value EUR 22,000, new vehicle)

• CO2 coefficient: 4% (minimum)
• Calculated ATN: 22,000 x 100% x 4% = EUR 880
• Applied ATN: EUR 1,600 (minimum) = EUR 133.33/month

Tax impact of the car benefit in kind

The ATN is added to the beneficiary's taxable remuneration. The extra tax depends on the marginal bracket:

BMW diesel vs Tesla comparison: for a comparable catalogue value, the Tesla costs the director EUR 1,155/year less in tax (50% bracket).

Benefit in kind for free use of a property (housing)

Housing provided by a legal entity

When a company provides free housing to its director or an employee, the benefit in kind is calculated on a flat-rate basis under the royal decree of 18 March 2013:

Formula: ATN = Indexed cadastral income x 100/60 x 2

Where:

• RC = non-indexed cadastral income of the property
• Indexed RC = RC x indexation coefficient (2026 coefficient: approximately 2.1763)
• The 100/60 multiplier converts the RC into an estimated rental value
• The 2 multiplier applies when the housing is provided by a legal entity (company)

If the RC exceeds EUR 745

For properties whose non-indexed RC is above EUR 745, the formula becomes:

ATN = Indexed RC x 100/60 x 3.8

Calculation example

Flat provided to the managing director by his SRL (private limited company):

• Non-indexed RC: EUR 1,200
• 2026 indexation coefficient: 2.1763
• Indexed RC: 1,200 x 2.1763 = EUR 2,611.56

Since the RC (1,200) exceeds 745:

• ATN = 2,611.56 x 100/60 x 3.8 = 2,611.56 x 1.6667 x 3.8 = EUR 16,540/year = EUR 1,378.33/month

This ATN is added to the director's taxable remuneration.

Housing provided by a natural person

If it is a self-employed individual (natural person) who provides housing to an employee, the multiplier is lower:

• RC ≤ EUR 745: ATN = Indexed RC x 100/60
• RC > EUR 745: ATN = Indexed RC x 100/60 x 2

Heating and electricity benefit in kind

2026 annual flat rates (2025 income)

When the company covers the heating and/or electricity of the beneficiary's home, annual flat rates apply:

Note: these amounts are indexed annually. The figures above are indicative for the 2026 tax year. Check the exact amounts on the FPS Finance (SPF Finances) website.

When does the heating/electricity benefit in kind apply?

• The company pays the energy bills for the beneficiary's home directly
• Or the company reimburses the beneficiary's energy bills
• Even if the company only covers part of the cost, the full flat rate applies

GSM, smartphone and phone subscription benefit in kind

Annual flat rate

The benefit in kind for the free provision of a mobile phone (GSM, smartphone) with a subscription is valued on a flat-rate basis at:

• Phone + subscription: EUR 72/year (EUR 3/month) under the current administrative position
• Subscription only (no device): EUR 48/year (reduced value)

This flat rate covers private use of the phone and the subscription.

Comparison with the real cost

A phone subscription costs an average of EUR 30 to 50/month, or EUR 360 to 600/year. The flat-rate benefit in kind of EUR 72/year is therefore far below the real value. This is a major tax advantage.

Tax impact

At the 50% marginal bracket, the phone benefit in kind costs the beneficiary:

• 72 x 50% = EUR 36/year = EUR 3/month in extra tax

For a real advantage worth EUR 400 to 600/year, this is extremely favourable.

Laptop, tablet and internet benefit in kind

PC or tablet provided

The benefit in kind for the provision of a PC or tablet for mixed use (professional and private) is valued on a flat-rate basis at:

• PC/laptop: EUR 72/year (EUR 6/month)
• Tablet: EUR 36/year (EUR 3/month)

Home internet subscription

The benefit in kind for covering a home internet subscription is valued at:

• EUR 60/year (EUR 5/month)

Common combination

A company director benefiting from a laptop + tablet + phone + internet:

Extra tax (50% bracket): 240 x 50% = EUR 120/year = EUR 10/month

For real benefits worth a total of EUR 2,000 to 3,000/year, the extra tax of EUR 120 is negligible. This is one of the most tax-efficient packages available.

Reduced-rate or interest-free loan benefit in kind

When the company lends to its director

If a company grants a loan to its director or an employee at a rate below the reference rate, the difference constitutes a benefit in kind.

2026 reference rates (indicative)

Reference rates are set annually by royal decree:

Calculating the benefit in kind

ATN = (Reference rate – Effective rate) x Capital borrowed

Example: the company lends EUR 50,000 to its managing director at 0% interest (non-mortgage loan).

• Reference rate: 5.50%
• Effective rate: 0%
• ATN: (5.50% – 0%) x 50,000 = EUR 2,750/year

The debit current account

If the director's current account is in debit (the director owes money to the company), the ATN is calculated at the reference rate for a current account debit (approximately 8%). On an average debit of EUR 30,000:

• ATN: 30,000 x 8% = EUR 2,400/year

Warning: a debit current account is problematic on several levels:

• The ATN is taxed in the director's hands
• Unpaid interest counts as a disallowed expense (DNA) for the company
• Risk of FPS Finance (SPF Finances) reclassifying it as remuneration
• Impact on meeting the minimum remuneration condition for the SME corporate tax rate

The benefit in kind on the company side: the disallowed expense (DNA)

The principle

On the company side, a benefit in kind granted to a director or employee triggers a disallowed expense (DNA) if the benefit is not reported on the beneficiary's tax form.

But even when the benefit in kind is correctly declared on the form, certain benefits in kind generate a specific DNA:

Company car DNA

The portion of car costs that is not deductible (under the CO2 limitation) constitutes a DNA. In addition, the CO2 solidarity contribution paid to the ONSS (National Social Security Office) is deductible for the company.

Flat-rate car DNA

On top of the DNA linked to actual vehicle costs, the company must report a flat-rate amount equal to 17% of the car benefit in kind as a DNA, times the number of private kilometres (a 40% flat rate of km).

More precisely, the flat-rate DNA = 40% x (car benefit in kind x 100/120)

This formula is complex and your accountant will apply it automatically.

Social contributions on benefits in kind

For employees

Benefits in kind are subject to ONSS (National Social Security Office) contributions (13.07% employee contribution + around 25% employer contribution). Car benefits in kind are an exception: they are not subject to ordinary ONSS contributions but to the CO2 solidarity contribution paid by the employer.

For self-employed company directors

Benefits in kind for self-employed directors are included in the calculation base for self-employed social contributions (around 20.5%). The benefit in kind therefore increases the contribution base.

Optimising benefits in kind: practical tips

1. Favour the electric car

The benefit in kind for an electric vehicle is systematically lower (minimum CO2 rate of 4%) and it is 100% deductible for the company. It is a double advantage: less tax for the beneficiary, more deduction for the company.

2. Build a phone + laptop + internet package

For a total tax cost of EUR 10/month for the beneficiary, you provide a real benefit worth EUR 200 to 300/month. The ratio is unbeatable.

3. Avoid the debit current account

The 8% reference rate generates a high benefit in kind, and FPS Finance closely monitors debit current accounts. Favour proper, formal remuneration instead.

4. Document everything

• Mention all benefits in kind on the tax forms (281.10 or 281.20)
• Keep purchase receipts and contracts
• Keep a register of goods provided

5. Assess the housing benefit in kind with caution

The housing benefit in kind can be very high (especially for properties with an RC above EUR 745). Run a simulation before providing housing through the company. In some cases, it is more advantageous to pay market-rate rent and deduct it as a business expense.

6. Personal contribution from the beneficiary

The beneficiary can pay a personal contribution to the company to reduce the taxable benefit in kind. The benefit in kind is then reduced by the amount of the contribution.

Example: a car benefit in kind of EUR 4,230. The director pays EUR 150/month (EUR 1,800/year) to the company. Taxable benefit in kind: 4,230 – 1,800 = EUR 2,430/year.

Summary table of 2026 flat-rate benefits in kind

Common mistakes to avoid

1. Not declaring benefits in kind on the tax forms: risk of a separate 100% contribution for the company (Article 219 CIR)
2. Using the purchase price instead of the catalogue value to calculate the car benefit in kind
3. Forgetting to declare the heating/electricity benefit in kind when the company pays the home's bills
4. Not applying the EUR 1,600 minimum for the car benefit in kind
5. Confusing the car benefit in kind with the CO2 contribution: these are two separate things (the benefit in kind is taxed on the beneficiary, the CO2 contribution is paid by the company to the ONSS)

Official resources

• FPS Finance – Benefits in kind: finances.belgium.be
• Fisconetplus (circulars and administrative commentary): eservices.minfin.fgov.be/fisconetplus
• Loan reference rates: published annually in the Belgian Official Gazette (Moniteur belge)
• ONSS – CO2 solidarity contribution: onssrszlss.fgov.be
• FPS Finance Contact Centre: 02 572 57 57

Conclusion

Benefits in kind are an essential remuneration tool in Belgium. Used intelligently, they let you offer substantial real benefits for a reduced tax cost. The key points to remember:

1. The electric car offers the lowest benefit in kind and the best deductibility for the company
2. The digital package (phone + laptop + internet) is extremely advantageous, with a total benefit in kind of only EUR 204/year
3. Housing provided by the company can generate a high benefit in kind: run a simulation beforehand
4. Systematically declare every benefit in kind on the tax forms to avoid the separate 100% contribution
5. A personal contribution from the beneficiary reduces the taxable benefit in kind

A well-structured remuneration plan combining salary, benefits in kind and a supplementary pension (individual pension commitment, EIP) is key to comprehensive tax optimisation for company directors in Belgium.

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This article was written by the Espero-Soft team for the blog dedicated to entrepreneurs in Belgium. For personalised advice, please consult a professional.