Deduct your car insurance

Your car insurance is tax-deductible

You can deduct all the costs you incur for your company car, including the car insurance. You do this to the extent you use the car professionally and based on the maximum tax deductibility, which depends on the CO2 emissions of your car (calculated using the gram formula).

Suppose you have a car that is tax deductible up to 80% according to the gram formula, but you, as a self-employed person with a secondary occupation, only use your car professionally 50% of the time. Then the tax deductibility of your car and all car expenses is 40% (50% of 80%). Within the same example, are you self-employed as a main occupation and do you use your car 100% of the time for professional purposes? Then you can deduct 80% of all car expenses, including your car insurance, as professional expenses.

What car expenses are tax deductible?

The purchase, financial renting or leasing of your car is (partially) tax deductible. To what extent and how to calculate this, read here.

In addition, all other costs associated with your car are also tax deductible to the same percentage. Think about:

• Car insurance
• Repairs and maintenance
• The interest you pay on a car loan
• Car accessories
• Immobilization tax (BIV)
• Fuel or electricity for charging*

*In the case of a hybrid car, the fuel (gasoline, diesel, gas) is up to 50% tax deductible.

It does not matter whether you are self-employed as a main or secondary occupation, and it applies to sole proprietorships as well as partnerships.

So next time you receive an invoice from your insurance company, be sure to upload it in Accountable or provide it to your accountant. There, that’s another few bucks the FOD/SPF won’t get from you.