You are here:
03 June 2021 / news

New bill for a green(er) mobility

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.

Electric car charging

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 / lease

 

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 (with transition period)

 

Current tax-deductibility rules

 

Tax deductibility capped at 50%

Current tax deductibility rules (100%)

 

01/01/2024 –

31/12/2024

 

 

Current tax-deductibility rules (with transition period)

 

Current tax-deductibility rules

 

Tax deductibility capped at 50%

Current tax deductibility rules (100%)

 

01/01/2025 –

31/12/2025

Current tax-deductibility rules (with transition period)

 

Current tax-deductibility rules

 

Tax deductibility capped at 50%

Current tax deductibility rules (100%)

 

01/01/2026 –

31/12/2026

0%

 

0%

 

0%

Current tax deductibility rules (100%)

 

01/01/2027 – 31/12/2027

0%

 

0%

 

0%

 

95%

 

01/01/2028-31/12/2028

 

 

0%

 

0%

 

0%

 

90%

 

01/01/2029 – 31/12/2029

 

 

0%

 

0%

 

0%

 

82,5%

 

01/01/2030 – 31/12/2030

 

 

0%

 

0%

 

0%

 

75%

 

01/01/2031 –

31/12/2031

 

 

0%

 

0%

 

0%

 

67,5%

  • A transition period exists for fossil fuel cars purchased / leased between 01/07/2023 and 31/12/2025: the tax deductibility will be capped at 75% in 2025, at 50% in 2026, at 25% in 2027 and 0% as of 2028. The tax deductibility of fossil fuel cars purchased / leased as of 01/01/2026 will be in any case 0%.   
  • 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.


Further guidance from the ECJ on VAT exemption for the management of special investment funds

Further guidance from the ECJ on VAT exemption

The ‘management of special investment funds’ may under certain conditions also encompass tax-compliance services. read more
football on fire

Q & A Employment Law - European Football Championship

The European Football Championship has started. In the coming weeks, we will present you - via question and answer - some points of attention that you, as an... read more
VAT fixed establishment non-existing without staff

VAT fixed establishment non-existing without staff

The ECJ ruled in the highly anticipated Titanium case that own staff is required for a ‘fixed establishment’ for VAT. read more
Stay informed

Don't miss out. Stay up to date about our latest news and events.

Stay informed