As part of measures announced by the Minister for Finance on publication of Finance Bill 2023, there is temporary change in the BIK measures for the calendar year 2023 which applies to company vehicles.
Under the temporary measure announced, the original market value (OMV) of company cars which fall into categories A, B, C and D may be reduced by €10,000. It should be noted that the relief will not apply to company cars which fall into Category E.
The temporary measure will also apply to all employer provided vans and electric vehicles. For electric vehicles, this temporary measure is in addition to the existing €35,000 reduction in OMV, hence the OMV on an electric vehicle can be reduced by a total of €45,000 in 2023.
In addition, the annual business kilometres in the highest mileage band will be reduced by 4,000 kms from 52,000 kms to 48,000 kms for 2023. We have noted below a table with updated rates:
| Annual Business KMs | Vehicle Categories | ||||
| A | B | C | D | E | |
| CO2 Emissions - CO2 g per km | 0-59 | 59-99 | 100-139 | 140-179 | 180+ |
| % of OMV | |||||
| 0-26,000 | 22.50 | 26.50 | 30.00 | 33.75 | 37.50 |
| 26,001-39000 | 18.00 | 21.00 | 24.00 | 27.00 | 30.00 |
| 39001-52,000 | 13.50 | 15.75 | 18.00 | 20.25 | 22.50 |
| 52,000 + | 9.00 | 10.50 | 12.00 | 13.50 | 15.00 |
These temporary measures will apply retrospectively with effect from 1 January 2023 and will remain in place until 31 December 2023. Employers are now permitted to apply the changes as part of future payroll submissions, notwithstanding that the formal enactment of the changes into law have yet to be passed.
Contact Us:
Please contact Mary Byrne, Payroll Solutions Manager on (090) 6480600 or any member of our team should you wish to discuss any aspect of the above in further detail.
