by Emiel Vanhée and Dries Torreele
These days, mobility and sustainability often go hand in hand, with the two becoming increasingly aligned on fiscal matters. As such, it has now been almost two years since the federal government passed its law on "tax and social greening of mobility". With this legislation in place, there is an increasing focus on the transition towards sustainable mobility. In this article, we list some of the key points on vehicle fleet electrification as well as the tax incentives in personal income tax.
When choosing a vehicle, it is often necessary to consider the total cost of the vehicle, known as the 'total cost of ownership' or 'TCO'. This takes into account the total cost of acquiring and running the vehicle throughout its life cycle/use cycle.
In addition, tax considerations obviously also have a significant impact on this decision-making process. As such, lawmakers have decided, from 1 July 2023, to systematically phase out the tax benefits of running of fossil-fuelled passenger vehicles or hybrid vehicles, whether purchased, leased or rented. This has led to a veritable stampede among car dealers.
In addition, the number of fully electric vehicles on the road continues to rise. After all, the cost of an electric vehicle purchased, leased or rented before 1 January 2027 remains fully tax deductible.
With the greening of the vehicle fleet, an increasing number of charging stations are also being installed. Companies who invest in charging stations can fully deduct their costs, regardless of the deduction rate of the vehicles making use of these charging stations. What's more, if these charging stations are new, including fixed, publicly accessible and smart (i.e. charging times and power output can be controlled via an energy management system), companies can even claim an increased cost deduction towards depreciation.
Rate of increased cost deduction
Period of investment in charging station
From 1 September 2021 up to and including 31 March 2023
From 1 April 2023 up to and including 31 August 2024
Private individuals who have charging stations installed at their home can in turn benefit from a one-time personal income tax reduction. This requires, among other things, that the charging station is new, smart and fixed. Furthermore, the charging station must be installed in or near the home, run on green energy and be approved by an accredited body.
Tax reduction rate
Period of payment expenditure
From 1 September 2021 up to and including 31 December 2022
From 1 January 2023 up to and including 31 December 2023
From 1 January 2024 up to and including 31 August 2024
If an employer provides its employees with a charging station in addition to a company car, it is best to adjust the current car policy accordingly. In concrete terms, this agreement could clarify where and when the car may be charged, any possible reimbursement of electricity costs, the fate of any charging station installed on the employee's premises upon termination of their employment contract, etc.
Got any questions about (future) tax deductions on your company vehicle or tax breaks on charging stations? Then contact one of our experts using the form below.
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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