Members are reminded that, effective 1 January 2023, there have been changes to the rules for calculating benefit-in-kind (BIK) on company vehicles under section 121 TCA 1997 & section 121A TCA 1997.
From that date:
- The BIK on all company cars, including electric vehicles, will be calculated with reference to CO2 emissions.
- The cash equivalent for vans will increase from 5 percent to 8 percent of the original market value (OMV).
In addition, for the years 2023 to 2025, the cash equivalent of an electric vehicle made available for an employee’s private use will be calculated based on the actual OMV reduced by:
- €35,000 for the year 2023,
- €20,000 for the year 2024, and
- €10,000 for the year 2025.
The changes are largely driven by the government’s Climate Action Plan 2021.
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