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Federal government agrees on greening of company cars

The federal government has reached a political agreement on tax measures for greening the fleet of company cars. The agreement does not include changes to the benefit in kind. Any reform thereof will be part of the big tax reform planned for 2024. The agreement is based on 3 pillars.

Deductibility of company cars

In 2026, only costs related to zero emission company cars will be 100% deductible. That deductibility will gradually decrease to 67,5% as from 2031.

Year

Deductibility

2026

100%

2027

95%

2028

90%

2029

82,5%

2030

75%

As from 2031

67,5%


The deductibility of costs related to company cars running on fossil fuels will be gradually phased out between 2025 and 2028.

Year

Deductibility (maximum)

2025

75%

2026

50%

2027

25%

As from 2028

0%


Costs related to contracts concluded before 1 July 2023 will continue to fall within the scope of the current regime.

For hybrids purchased as from 1 July 2023, the deductibility of fossil fuel expenses will be limited to 50%.

Tax incentives for charging stations

Individuals installing charging stations at home will benefit from a tax reduction:

Investment

Tax reduction

1/9/2021 – 31/12/2022

45%

2023

30%

1/1/2024 – 31/8/2024

15%


The amount for which a tax reduction can be granted is limited to 1.500 EUR per charging station and per taxpayer. The charging station must be “intelligent” and make use of green power.

Companies can benefit from an increased deduction, provided that the charging stations are accessible for the public.

Investment

Deduction

1/9/2021 – 31/12/2022

200%

1/1/2023 – 31/8/2024

150%

 

Companies purchasing a zero emission truck or installing a tank infrastructure for hydrogen or an electric charging station can benefit from an increased investment deduction as from 2023.

Mobility budget

The regime of the mobility budget will also be made more attractive as more options will qualify for the mobility budget such as electric steps, public transportation for family members and parking costs linked to the use of public transportation.

Please note that this is a political agreement. Although this is an important milestone, the modalities can still be changed during the parliamentary process.

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Frank Vancamp
Tax Partner

Corporate Tax
Brussels

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