The new tax benefits of electric company cars and charge points at a glance

Green light for green company fleets

We already knew that company cars will only be tax-deductible from 2026 onwards if they are 100% electric. But we still have a long way to go to meet that deadline. After all, at the beginning of 2021 only 2.3% of the company cars in our country were electric.

Since the Finance Minister Vincent Van Peteghem's bill was officially adopted at the beginning of November, our country has been gearing up to achieve this ambition. A number of new tax advantages are making it attractive for both individuals and companies to switch to electric driving now.

So why now, exactly? Because the benefits will gradually decrease in the longer term. The government is doing this in order to make (company) fleets in our country emission-free more quickly.

Tax deductibility of company cars with internal combustion engines being phased out

In order to make electric driving cheaper than driving on fossil fuel in the long term, the government is phasing out the tax deductibility of new ‘conventional’ company cars in the coming years. By 2028, the tax benefits will have been phased out completely.

This is what the transitional measures will look like if you buy, rent or lease a new company car with an internal combustion engine:

• until 1 July 2023, nothing will change. The current tax benefits will continue to apply.
• between 1 July 2023 and 31 December 2025, the tax benefits will gradually be reduced:
  • in 2025 to 75%
  • in 2026 to 50%
  • in 2027 to 25%
  • in 2028 to 0%

Tax benefits for electric company cars

In order to enjoy favourable tax benefits, it is clear that you would already be better off opting for carbon-free company cars at this point. 100% electric company cars are 100% tax deductible. This will continue to be the case for new EVs purchased until the end of 2026.

After this, the tax benefit will decrease year after year. If you buy, rent or lease a new EV:

• in 2026 - tax deduction: 100%
• in 2027 - tax deduction: 95%
• in 2028 - tax deduction: 90%
• in 2029 - tax deduction: 82.5%
• in 2030 - tax deduction: 75%
• in 2031 - tax deduction: 67.5%

Tax benefits for charge points: companies and individuals

More electric vehicles on the road also means a need for more electric charge points. In order to increase this number quickly, both companies and private individuals can count on substantial tax benefits when they purchase a charge point. These benefits are also highest at the moment in order to encourage people to invest in charge points at home and at work in the short term.

200% tax deductibility for companies

If you invest in charging infrastructure as a company, your purchase will be 200% tax-deductible until the end of 2022. After that, the benefits start to decrease: until the end of 2024, the purchase will still be 150% tax-deductible.

It is important to note that in order to enjoy the tax benefit, your charge point must be publicly accessible, both during and after your opening hours.

45% tax benefit for private individuals

As a private individual, if you have a charge point installed in your driveway or in your garage, for example, you will still be able to claim back 45% of the purchase amount on your tax return until the end of 2022. Both owners and tenants can claim a maximum of 1500 euros per charge point on their tax returns. From 2023, the benefit will decrease to 30% and from 2024 to 15%.

The conditions? The charge point must be smart and must also use green electricity, for example from solar panels or a green electricity contract. MobilityPlus is happy to help you select and install a smart charging station at your home.

The ultimate goal: hassle-free electric driving and charging for all Belgians

Making the entire Belgian fleet more sustainable starts with company cars. After all, these cars find their way onto the private second-hand market after a few years. The tax benefits described above will immediately make electric company cars a lot more attractive than company cars that run on fossil fuels. Factor in all the other advantages – lower TCO, positive impact on the environment, green corporate image, high level of driving comfort – and the switch to electric driving will be a logical next step.

It goes without saying that the charging infrastructure needs to keep up. Charge points both at home and at work are becoming more affordable thanks to the draft legislation, which in turn will make the charging network in our country grow in the years ahead. If the demand for private electric cars also increases as a result, the production prices will fall and an electric car will become feasible for a wider audience. And that sounds like music to our ears!