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Electrification of company cars: new rules on deductibility and incentives for charging stations

To speed up the electrification of the car park, a new law changes the rules on the deductibility of company cars and introduces tax incentives for the installation of charging stations.

New rules on deductibility

The deductibility of costs of electric cars will be advantaged compared to that of petrol, diesel and hybrid cars which will be phased out.

Depending on the fuel type and on the date of purchase, lease or rent of the company car, the deductibility of the costs will be as follows:

  • Petrol and diesel cars

Date purchase, lease or rent

Deductible?

Deductibility

Before 01/07/2023

Yes, over the whole duration

General formula (min 40%, max 100%)

01/07/2023 – 31/12/2025

Yes and no, over the whole duration

AY 2026: no minimum, maximum 75%

AY 2027: no minimum, maximum 50%

AY 2028: no minimum, maximum 25%

AY 2029: 0%

As from 01/01/2026

Not deductible

/

  • Hybrid cars

Date purchase, lease or rent

Deductible?

Deductibility

Before 01/01/2023

Yes, over the whole duration

General formula (min 40%, max 100%)

01/01/2023 – 30/06/2023

Yes, over the whole duration

General formula (min 40%, max 100%)

BUT fossil fuel max. 50%

01/07/2023 – 31/12/2025

Yes and no, over the whole duration

AY 2026: no minimum, maximum 75%

AY 2027: no minimum, maximum 50%

AY 2028: no minimum, maximum 25%

AY 2029: 0%

BUT fossil fuel max. 50%

As from 01/01/2026

Not deductible

/

 

  • Electric cars

Date purchase, lease or rent

Deductible?

Deductibility

Before 01/01/2027

Yes, over the whole duration

100%

In 2027

Yes, over the whole duration

95%

In 2028

Yes, over the whole duration

90%

In 2029

Yes, over the whole duration

82,5%

In 2030

Yes, over the whole duration

75%

As from 2031

Yes, over the whole duration

67,5%

 

Tax incentives for charging stations

Businesses can benefit from tax incentives for the installation of electric charging stations.

Depreciation on investments in publicly accessible and intelligent electric charging stations can benefit from an increased deduction:

Date of investment

Deduction

01/09/2021 - 31/12/2022

200%

01/01/2023 - 31/08/2024

150%

Investments in zero emission trucks, in electric charging infrastructure for such trucks and in tank infrastructure for hydrogen can benefit from an increased investment deduction:

Investment

Investment deduction

2022-2023

35%

2024

29,5%

2025

24%

2026

18,5%

2027 and later

13,5%

Individuals can, under certain conditions, also qualify for a tax reduction for expenses of the installation of an electric charging station at home.

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Wouter Caers
Tax Partner

Corporate Tax
Antwerp

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