20:27 28-05-2026

Dutch Tax on Company Cars with ICE and Hybrids Starting 2027

Starting 2027, Dutch employers will pay a 1% monthly tax on the price of company cars with combustion engines or hybrids, aiming to boost EV adoption. Learn how this affects fleets.

Starting January 1, 2027, Dutch employers will face an extra levy on new leased company cars with internal combustion engines or hybrids. The move aims to push corporate fleets toward electric vehicles.

Called the Pseudo-eindheffing, this tax requires employers to pay 1% of the car's official price each month if its CO2 emissions exceed 0 g/km. For a €35,000 car, that's €350 per month—and employers cannot pass the cost on to employees.

The levy applies to all passenger cars that aren't fully electric. Vans and vehicles used strictly for business purposes without personal use are exempt, though that status must be verified and monitored.

This new surcharge comes on top of the regular tax on personal use of company cars. According to the Dutch Leasing Association (VNA), employers are already worried about rising costs.

Many large Dutch companies already restrict employee leasing to EVs only. But small and midsize businesses still frequently run gasoline fleet cars. Come September 2030, the levy will extend to leasing agreements signed before January 1, 2027. For the 2026 car market, this signals intensifying pressure on ICE models.