For cars first registered in 2025 and assigned for mixed use by employees from 2025 onwards, the method for calculating the value of the fringe benefit has been revised based on the fuel type:
- Electric Vehicles: Taxation is reduced to 10% of the value of the fringe benefit.
- Plug-In Hybrid Vehicles: Taxation is set at 20% of the value of the fringe benefit.
- Traditional Vehicles (Petrol/Diesel): Taxation is increased to 50% of the value of the fringe benefit.
Further guidance from the Inland Revenue Agency is still expected regarding how to manage cars assigned at the turn of the year.
