The company car remains extremely popular in Belgium. In 2019, the company car's share in Belgian car sales was no less than 57%. So the working Belgian has not only a brick, but also a company car in his stomach.
This should not come as a surprise. As an employee, you only pay taxes on the private use of your company car. As an employer, the company car is also extremely interesting. The car costs are largely deductible.
But what does the future hold for the company car?
What will the future bring for the company car?
For the time being, there is little political will to completely overhaul the company car system. The government has reached an agreement this year to reduce the company car fleet, but there is absolutely no question of reducing the number of company cars. greening But there is absolutely no question of reducing the company car fleet.
On 18 May 2021, the De Croo government concluded the following agreement:
For commercial vehicles
From 2026 onwards, only emission-free company cars will benefit from a tax deduction. The deduction is concrete:
- 100% for the full term if the car was purchased in 2026
- 95% for the full term if the car was purchased in 2027
- 90% for the full term if the car was purchased in 2028
- 82.5% for the full term if the car was purchased in 2029
- 75% for the full term if the car was purchased in 2030
- 67.5% for the full term if the car was purchased in 2031 or later
The deduction for fossil fuel commercial vehicles will fall year on year from July 2023, to be phased out by 2028. There will be no break in existing contracts or in cars purchased before 1 July 2023. Specifically:
- Cars purchased between 1 July 2023 and 31 December 2025 receive a transitional regime
- Cars purchased in 2026 have a tax deductibility of up to 75%.
- Cars purchased in 2027 have a tax deductibility of up to 50%.
- Cars purchased in 2028 have a tax deductibility of up to 25%.
- From 2029 onwards, no deduction will be allowed
From 2026, there is also no flat-rate deduction of €0.15/km for commuting (at least for non-electric cars) in case an employee chooses to prove his/her actual professional expenses.
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For charging stations
Also for charging stations, the De Croo government made a number of decisions to stimulate companies to invest in charging stations.
Specifically, for investments in new charging stations for electric cars by self-employed people and companies:
- Between 1 September 2021 and 31 December 2022, a tax deduction rate of 200%is possible
- Between 1 January 2023 and 31 August 2024 , a tax deduction rate of 150% is possible
So company cars are here to stay. But of course there are alternatives to the company car. In this blog, you will read all about the mobility budget, the sustainable alternative to the company car.