The zero-emission company car as the new standard
19/05/2021

As mentioned in our newsflash of 21 April 2021, the text of the government declaration indicated that it was the intention to modify the tax treatment of company cars by 2026 and move to zero emission vehicles. On 18 May, the Belgian federal government reached an agreement on the tax treatment of (eco-friendly) company cars. 

The main principles as indicated in our newsflash of 21 April 2021 remain. As from 2026 onwards, only zero emission company cars will be able to benefit from a tax deduction. New in the agreement the government reached today, is that the zero emission company cars will initially be 100 % tax deductible in the year 2026, but by 2031 that percentage will gradually reduce to 67,5%. For fossil fuel cars, a scenario has been agreed whereby the deduction will be reduced year by year between 2023 and 2028, without breaking existing contracts. So far, no changes seem to be introduced in relation to the taxable benefit in kind on behalf of the employee, except for the usage of only the new WLTP norm for new cars. 

In addition, the government has agreed to increase the number of charging stations in Belgium by giving tax incentives. Finally, agreements have also been made on simplifying the Mobility Budget. As soon as more information is available we will provide updates.

Bart Lombaerts

Director
Tel: +32 475 98 28 17
 

Related : PwC Belgium

[+ http://www.pwc.be]


All articles Corporate tax

Lastest articles Corporate tax

Het lot van liquidatiereserves bij geruisloze fusies en partiële splitsingen: verlies liquidatie...
23/07/2021

Heel wat vennootschappen maken op vandaag gebruik van het regime van de liquidatiereserves. Mits betaling van een liquidat...

Het lot van liquidatiereserves bij geruisloze fusies en partiële splitsingen: verlies liquidatieheffing! Read more

Important update on payments to tax havens for assessment year 2021
06/07/2021

Companies making direct or indirect payments to recipients established in so-called tax havens are required to report thes...

Important update on payments to tax havens for assessment year 2021 Read more

Supreme Court renders milestone ruling on legal certainty protecting taxpayers’ rights
28/06/2021

On 4 June 2021, the Supreme Court (“Hof van Cassatie”/“Cour de cassation”) rendered a&nb...

Read more

Verplichting voor financiële instellingen om in het verleden uit het buitenland gerepatrieerde g...
23/06/2021

De Nationale Bank van België heeft op 8 juni 2021 een circulaire uitgevaardigd die de correcte naleving van de waakza...

Read more

LexGO Network