Insights

Netherlands: Employer Levy on Fossil Company Cars from 2027

Jimmie van der Zwaan 11 May 2026

An analysis by Borgen Tax, Taxand Netherlands

The Dutch Government has announced plans to introduce a new employer levy on fossil fuel company cars from 2027 as part of wider environmental and sustainability measures.

The proposed levy is intended to encourage the transition towards electric vehicles and reduce emissions connected to employer-provided transport. Businesses with company car schemes may therefore need to review their fleet strategies and future tax costs.

Jimmie van der Zwaan from our Dutch member firm, Borgen Tax, has published an analysis of the proposed rules and their potential implications, including:

• The scope of the proposed employer levy
• Which vehicles may be affected
• Potential cost implications for employers
• Key considerations for reviewing company car policies

The full analysis from Borgen Tax can be read here.

Article tags

Environmental Tax | Netherlands | Tax