On 18 May 2021, a bill was approved by the Belgian Government to create a green(er) mobility in Belgium by (1) promoting tax incentives for CO2-emission free company cars, (2) fiscally stimulating an accelerated growth of charging stations both for private individuals and companies and (3) with a more extensive mobility budget.
Tax deductibility company cars
Below tables illustrate the intentions of the government on how to stream companies towards CO2-emission free cars (full electric cars) by capping the tax deductibility for companies of (even CO2-emission free) company cars in the future.
Year of purchase
Tax deductibility
Fossil fuel cars
(Plug-in) Hybrid cars
CO2-free cars (full electric cars)
Other cost(s)
Fuel cost(s)
01/01/2021 – 31/12/2021
Current tax deductibility rules
Current tax deductibility rules (100%)
01/01/2022 – 31/12//2022
Current tax-deductibility rules
Current tax deductibility rules (100%)
01/01/2023 –30/06/2023
Current tax-deductibility rules
Current tax-deductibility rules
Tax deductibility capped at 50%
Current tax deductibility rules (100%)
01/07/2023 – 31/12/2023
Current tax-deductibility rules
Current tax-deductibility rules
Tax deductibility capped at 50%
Current tax deductibility rules (100%)
01/01/2024 –
31/12/2024
Current tax-deductibility rules
Current tax-deductibility rules
Tax deductibility capped at 50%
Current tax deductibility rules (100%)
01/01/2025 –
31/12/2025
Current tax-deductibility rules but capped at 75%
?
?
Current tax deductibility rules (100%)
01/01/2026 –
31/12/2026
Current tax-deductibility rules but capped at 50%
?
?
Current tax deductibility rules (100%)
01/01/2027 – 31/12/2027
Current tax-deductibility rules but capped at 25%
?
?
95%
01/01/2028-31/12/2028
0%
?
?
90%
01/01/2029 – 31/12/2029
0%
?
?
82,5%
01/01/2030 – 31/12/2030
0%
?
?
75%
01/01/2031 –
31/12/2031
0%
?
?
67,5%
- Based on the above table, it is unclear how the tax deductibility of (plug-in) hybrid cars will evolve in the coming years as the Finance Minister only referred to implementing a cap on the tax deductibility with respect to fuel cost ”as of January 2023”.
However, since a (plug-in) hybrid car remains a “fossil fuel car” still having a CO2-emission, it is to our opinion meant to be that the tax deductibility will evolve in the same way as for fossil fuel cars as the government clearly wishes to only promote CO2-emssion free cars.
- Even though there is no reference made to “fake” hybrid cars, it can be expected that the current reasoning of assimilating fake hybrid cars with comparable fossil fuel cars shall continue to be applied as well.
Please note that:
- The above changes only apply with respect to new cars meaning that existing (lease) contracts shall not be impacted by these changes.
- The changes that government intend to apply for company cars does not affect (at this stage) the employee and his/her taxable benefit for having for free at his/her disposal a company car.
Charging stations at home and at the workplace
The government also aims to encourage an accelerated increase in the number of charging points for electric (and plug-in hybrid) cars, both at home and at the workplace. Hence, the following tax benefit has been developed:
This article is also available in Dutch and French
Tax deductibility company cars
Below tables illustrate the intentions of the government on how to stream companies towards CO2-emission free cars (full electric cars) by capping the tax deductibility for companies of (even CO2-emission free) company cars in the future.
Year of purchase
Tax deductibility
Fossil fuel cars
(Plug-in) Hybrid cars
CO2-free cars (full electric cars)
Other cost(s)
Fuel cost(s)
01/01/2021 – 31/12/2021
Current tax deductibility rules
Current tax deductibility rules (100%)
01/01/2022 – 31/12//2022
Current tax-deductibility rules
Current tax deductibility rules (100%)
01/01/2023 –30/06/2023
Current tax-deductibility rules
Current tax-deductibility rules
Tax deductibility capped at 50%
Current tax deductibility rules (100%)
01/07/2023 – 31/12/2023
Current tax-deductibility rules
Current tax-deductibility rules
Tax deductibility capped at 50%
Current tax deductibility rules (100%)
01/01/2024 –
31/12/2024
Current tax-deductibility rules
Current tax-deductibility rules
Tax deductibility capped at 50%
Current tax deductibility rules (100%)
01/01/2025 –
31/12/2025
Current tax-deductibility rules but capped at 75%
?
?
Current tax deductibility rules (100%)
01/01/2026 –
31/12/2026
Current tax-deductibility rules but capped at 50%
?
?
Current tax deductibility rules (100%)
01/01/2027 – 31/12/2027
Current tax-deductibility rules but capped at 25%
?
?
95%
01/01/2028-31/12/2028
0%
?
?
90%
01/01/2029 – 31/12/2029
0%
?
?
82,5%
01/01/2030 – 31/12/2030
0%
?
?
75%
01/01/2031 –
31/12/2031
0%
?
?
67,5%
- Based on the above table, it is unclear how the tax deductibility of (plug-in) hybrid cars will evolve in the coming years as the Finance Minister only referred to implementing a cap on the tax deductibility with respect to fuel cost ”as of January 2023”.
However, since a (plug-in) hybrid car remains a “fossil fuel car” still having a CO2-emission, it is to our opinion meant to be that the tax deductibility will evolve in the same way as for fossil fuel cars as the government clearly wishes to only promote CO2-emssion free cars. - Even though there is no reference made to “fake” hybrid cars, it can be expected that the current reasoning of assimilating fake hybrid cars with comparable fossil fuel cars shall continue to be applied as well.
Please note that:
- The above changes only apply with respect to new cars meaning that existing (lease) contracts shall not be impacted by these changes.
- The changes that government intend to apply for company cars does not affect (at this stage) the employee and his/her taxable benefit for having for free at his/her disposal a company car.
Charging stations at home and at the workplace
The government also aims to encourage an accelerated increase in the number of charging points for electric (and plug-in hybrid) cars, both at home and at the workplace. Hence, the following tax benefit has been developed:
Individual
Companies
Between September 1st, 2021 and August 31, 2024, any individual (i.e. landlord or tenant) who purchases and installs an “intelligent” charging station (i.e. control of charging time and power) for green electricity at home will be entitled to a tax reduction equal to a percentage varying from 45% to 15% times the purchase and installation costs which expense is on itself capped at 1.500 EUR. The percentages apply as follows:
- Investment made between September 1st, 2021 and December 31, 2022: tax reduction of 45%
- Investment made in 2023: tax reduction of 30%.
- Investment made in 2024 (until August 31, 2024): tax reduction 15%.
The tax reduction applies per charging station and per individual taxpayer.
Between September 1st, 2021 and August 31, 2024, companies investing in a publicly accessible charging station will be entitled to benefit from an increased tax deduction of costs.
- Investment made between September 1st, 2021 and December 31, 2022: tax deductibility of 200 %.
- Investment made between January 1st, 2023 and August 31, 2024: tax deductibility of 150 %.
This recharging facility must be freely accessible to third parties (i.e. semi-public areas like company parking spots), either during or outside normal opening hours.
Expanding the mobility budget
The mobility budget shall be simplified, made more flexible and further expanded to encourage a shift in greener mobility. The Finance Minister announced that the following elements will become part of the alternative/ softer mobility:
- Financing costs (g. loans for bicycles), parking costs and the costs of equipment that improves the safety and visibility of soft mobility.
- Electric mobility devices', such as electric steps, are also considered soft mobility.
- Public transport abonnements for the employee’s family members living in the same household.
- Parking fees related to the use of public transport.
- A premium for walking from the residency place to the workplace.
- Housing costs extended to a radius of 10 kilometers from the workplace (instead of currently 5 kilometers). Mortgage capital repayments will now also be taken into account.
