Table of Contents
Legislation
On May 18, 2021, the De Croo government concluded an agreement to green commercial vehicles.
In a nutshell, that agreement includes:
- From 2026, only zero-emission company cars enjoy tax deduction. Fuel-engine cars drop in deductions from July 1, 2023 to 2028 year after year to die out by 2028.
- Charging stations and charging points placement will be encouraged to enable a greener fleet:
- Tax credits for individuals
- Increased deduction on charge points and charging stations for companies that make the charging stations publicly accessible to customers or third parties.
- The mobility budget is simplified for employees without a company car to make people choose environmentally friendly forms of commuting.
Greening: electric passenger cars
From 2026, only emission-free company cars will enjoy a tax deduction. That deduction is 100% for cars purchased, leased or rented in 2026. For cars purchased in 2027, this rate drops to 95%, for purchases in 2028 to 90%, for purchases in 2029 to 82.5%, for purchases in 2030 to 75% and to 67.50% for purchases in 2031.
Greening: fuel-engine commercial vehicles
For passenger cars with internal combustion engines purchased before July 1, 2023, the current tax deduction continues to apply.
For passenger cars with an internal combustion engine purchased between July 1, 2023 and December 31, 2025, a transitional regime (current rules) starts with phasing out. In tax year 2026, the deductibility will be capped at 75%, in tax year 2027 at 50%, in tax year 2028 at 25% and from tax year 2029 at zero.
During the transitional regime, the lower limit of 50% and the lower limit of 40% are given up!
Passenger cars with internal combustion engines purchased from January 1, 2026 are entitled to 0% deduction.
Greening: hybrid commercial vehicles
- For hybrid passenger cars purchased before July 1, 2023, the current tax deduction will continue to apply.
- For hybrid passenger cars purchased as of July 1, 2023:
- Does the current tax deduction scheme continue to apply;
- Is discouraged the use of the internal combustion engine in such cars. The tax deductibility of gasoline or diesel costs is thus 50%.
- Will the solidarity contribution be greatly increased (to 5.5% from Jan. 1, 2027).
- For hybrid passenger cars purchased from Jan. 1, 2026, there is no tax deduction.
Greening: vans and trucks
Companies that purchase a zero-emission truck or van enjoy an increased investment deduction. The same applies to investments in hydrogen refueling infrastructure and electric charging stations.
The rate of the increased investment deduction is 35% in 2023, 29.5% in 2024, 24% in 2025, 18.5% in 2026 and 13.5% in 2027.
Measures are in place to prevent mass switching from a passenger car to a van, pickup truck or motorcycle purely to avoid the new deduction restrictions.
Installation of charging stations at private homes
An individual who has a new charging station for electric cars installed in his home will receive a tax reduction for it. The rate is 45 % for payments from 01.09.2021 to 31.12.2022. That rate drops to 30% for payments in 2032 and 15% for payments in 2024, for both tenants and owners.
The taxpayer must not have already claimed the tax credit for a previous taxable period.
The amount for which a tax credit can be granted and on which it is calculated is limited to 1,750 euros per charging station and per taxpayer. The technological and environmental conditions are as follows: the charging station must be able to control the charging time and power (be intelligent) and must run on green electricity.
Installing charging stations at businesses
Companies investing in a new charging station between Sept. 1, 2021 and Aug. 31, 2024 will receive an increased cost deduction (art 64qauter WIB 92).
For investments between September 1, 2021 and March 31, 2023, the deduction is 200 %. For investments between April 1, 2023 and December 31, 2023, the cost deduction is 150 %.
The charging station must be freely accessible to third parties for at least part of the day, must be intelligent (charging time and charging power controllable by an energy management system) and must be approved by a recognized inspection mechanism.
Compensation solidarity contribution
- Solidarity contribution = NSSO payable by the employer for the vehicle he provides to his employees for private use (so-called CO2 tax).
- For non-emission-free passenger cars purchased before July 1, 2023, the current method of calculation will remain.
- For non-emission-free passenger cars purchased from July 1, 2023, the solidarity contribution will be greatly increased (to 5.5 times from Jan. 1, 2027).
- There is a minimum contribution for zero-emission passenger cars. This will gradually increase to the average contribution for today's commercial vehicle.
Greening: reporting to FPS Finance
- Employers and companies must provide the FPS Finance with all the data necessary to determine the impact of the measures on the VAA. These include company cars, the tax deductibility of professional expenses related to company cars, fuel taxes and VAT. How will be determined later by RD.
- The new obligation applies from the day the new law is published in the Belgian Official Gazette and will be applicable as of the assessment year 2022 associated with a fiscal year starting at the earliest on January 1, 2021.
- Those who ignore the new obligations risk an administrative fine of 50.00 to 1,250.00 euros.
Simplifying mobility budget
- The mobility budget will be broader, simpler and more flexible.
- Those who want an environmentally friendly car as an alternative to the ceded car (pillar 1) will have to purchase a company car with zeroCO2 emissions from Jan. 1, 2026.
- As spending in pillar 2 (soft mobility), the following payments will become possible from September 1, 2021:
- Bicycle parking or bicycle safety
- Electric scooters
- Parking fees at train or bus parking lots
- Subscriptions to public transportation for resident family members
- A pedestrian bonus for commuting (max. 0.24 euros/km)
- Housing costs within 10 kilometers (instead of 5 km) of the place of employment. Capital repayments of mortgage loans will also count.
- From September 1, 2021, the mobility budget will no longer be linked to a particular job category for which the employer's car policy provides for a company car.
- For a job change or promotion from Sept. 1, 2021, it is sufficient that the employer's payroll system provides for a higher or lower budget.
- As of September 1, 2021, the RD may establish a formula to calculate the amount of the mobility budget. From then on, this will no longer be done according to the TCO of the returned car.
- From September 1, 2021, the mobility budget must be proportionately limited to the number of calendar days of the calendar year in which the employee participated in the mobility budget system.
Legal requirements
Want to learn more about what the legal requirements are for installing charging stations?
