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Parliamentary questions about the pseudo-final levy on non-zero-emission company cars
During the treatment of the Tax Plan 2026 in the Finance Standing Committee, State Secretary Eugène Heijnen (Tax Affairs, Tax Administration and Customs) provided important clarification concerning the application of the pseudo-final levy on fossil fuel company cars. This passage is also relevant for employers with cross-border employees (salary split).
The State Secretary confirmed that the pseudo-final levy may apply as soon as an employer (foreign or domestic) is liable for wage tax withholding in the Netherlands. It is irrelevant in this context whether or not an employee pays tax on only part or all of their salary in the Netherlands. If a non-zero-emission company car is used for private purposes within a calendar month, the pseudo-final levy is payable for the entire month. According to the State Secretary, the same also applies in the event of a salary split.
Eugène Heijnen further indicated that the pseudo-final levy can only be effectively levied insofar as the Netherlands has the power to do so under a tax treaty. However, he then also stated that in a situation where an employee is partially taxed in the Netherlands, the pseudo-final levy applies in full.
We are curious to see whether this will be discussed further during the debate on the Tax Plan in the Senate.