There are two methods in Luxembourg of valuing the benefit to the employee of the provision of a company car:
- Ìý
•ÌýÌýÌýÌý actual cost method
- Ìý
•ÌýÌýÌýÌý alternative method
The actual cost (log book) method
This may produce a lower BIK where the employee's private travel is relatively low, but it requires the employee to keep a detailed log showing both their private (including home-to-work commuting) and business travel in kilometres.
The employer determines the cost per kilometre of running the car, which must accurately reflect the costs of the car, including costs such as fuel and servicing. The employee's BIK is their total private travel for the year in kilometres multiplied by the running cost per kilometre determined by the employer. Contributions made by the employee towards the employer's costs reduce the BIK value
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Web page updated on 17 Mar 2025 15:42