Several websites enable car owners to let their often unused car to non-car owners who are looking to rent a car during a short time.

For example: Madam H’s car (a minivan) sits unused in her company’s parking lot during the entire workday because she remains in the office at all times. At the same time, student S is looking for transportation, from 9am to 5pm, to move his belongings to another student dorm. Student S consults Website X on which he finds that Madam H’s car can be rented for EUR 20 a day (excluding handling fee). Student S decides to send Madam H a request to rent her car during that day. In case she accepts, Madam H will receive EUR 20 directly from Student S, while Website X will receive the handling fee from Student S.

Website X requested the ruling committee to rule on the nature of the income received by Madam H. The committee ruled that the income would not qualify as professional income as long as Website X allows car owners (i) to register only 1 privately owned car per individual, (ii) to offer that car during maximum 60 days per year, and (iii) to generate maximum EUR 2.400 per year.

In case the above conditions are met, the ruling committee considers that income will qualify as income from movable property in the hands of Madam H. Income from movable property is taxed separately at a rate of 27%. In addition, Madam H is allowed to deduct her true expenses or estimate those at 15% of gross revenue. If the income would qualify as professional income it would be added to and taxed together with Madam H’s other professional income at the applicable rate (ranging from 25% to 50%).