Belgium: Tax incentives proposed for lower emission company cars

Tax measures for the “greening” of company car fleets

Tax measures for the “greening” of company car fleets

A political agreement has been reached with regard to tax measures for the “greening” of company car fleets.

Any reform would be part of the tax reform planned for 2024.

The agreement is based on three standards:

  • Deductibility of company cars
    • In 2026, only costs related to zero-emission company cars would be 100% deductible. That deductibility would gradually decrease to 67.5% as from 2031.
    • The deductibility of costs related to company cars operating on fossil fuels would gradually phase out between 2025 and 2028.
    • Costs related to contracts concluded before 1 July 2023 would continue to be within the scope of the current regime.
    • For hybrid cars purchased as from 1 July 2023, the deductibility of fossil fuel expenses would be limited to 50%.
  • Tax incentives for charging stations
    • Individuals installing charging stations at home would be eligible for a tax benefit.
    • Companies would benefit from an increased deduction, provided that the charging stations are accessible to the public.
    • Companies purchasing a zero-emission truck or installing a tank infrastructure for hydrogen or an electric charging station would benefit from an increased investment deduction as from 2023.
  • Mobility budget
    • More options would qualify for the “mobility budget” such as electric steps, public transportation for family members, and parking costs linked to the use of public transportation.

KPMG observation

It is important to note that this is a political agreement, and could be subject to change during the parliamentary process.

Read a May 2021 report prepared by the KPMG member firm in Belgium

 

 

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