The tax authorities have published two agreements with the Association of Dutch Car Lease Companies ("VNA") about the making available of a company car. These two agreements have the aim to prevent that employers wrongly apply a double or incorrect additional tax liability in specific cases.
The first agreement relates to the temporary replacement of the lease car (“initial car") by another lease car ("replacement car"). One can think of, for example, a replacement lease car for the duration of a holiday period. In order to prevent a double additional tax liability, the VNA and the tax authorities have agreed that the additional tax liability only applies to the replacement lease car during the period of replacement. This is subject to the condition that the initial car is not available to the employee during the period of replacement.
In addition, a second agreement has been made regarding the hiring out of so-called pool cars. These are cars that are available to several employees - in principle for business purposes. The employer is free to hire out such pool cars to his employees for private use. Under the agreement between the VNA and the tax authorities, cars can be hired out without additional tax liability if the employee pays a market-based rental price for the private use of the pool car (for the amounts regarded as market-based rental prices, check the following link). The employer must also have conclusive records regarding the kilometres driven for private use.
Finally, the two agreements have effect only if laid down in writing, in a manner reflecting the real situation, between the employer and the employee.