Commercial vehicles mandatory electric from 2026, is it possible?
According to Finance Minister Vincent Van Peteghem (CD&V), tax breaks will gradually shift in favour of emission-free electric vehicles from 2026. But what does this mean for companies and drivers, and may all company cars be compulsorily electric? Here are the key points to know about the new company car tax.
Fuel
Electrification of company cars
From 2026, companies will only be able to deduct electric company cars from their taxes. This reform aims to green the Belgian car fleet. Diesel and petrol vehicles registered before 1 July 2023 will keep their tax advantage throughout their lifetime.
Phasing out of deductibility
The deductibility of combustion engine cars will be phased out, starting with a capping at 75 per cent in 2025, followed by further decreases to zero from 2028. For hybrid company cars purchased after 1 July 2023, the tax deductibility of petrol or diesel costs will be capped at 50 per cent.
Compensatory measures
However, the government has included compensatory measures, such as gradually reducing tax deductions and increased CO₂ contributions. Social measures are also included, such as making the mobility budget more flexible. Finally, the government also envisages a tax reduction for the costs when installing a charging station at work and at home with employees. “The only condition we impose in this respect is that these charging stations can also be used by others than the own employees, against payment of course,” Minister Van Peteghem said.
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