Car fiscality anno 2023

Mobility has changed a lot in recent years. More and more people are opting for an electric or hybrid car, or looking for alternative ways to get around.

That is why we would like to map out the current rules of the game in the world of car taxation. We also provide a golden tip that could well save you an expensive lesson.

Plug-in hybrid or fully electric?

It's clear that the government's policy is targeting conventional petrol or diesel cars. The higher the CO2 emissions of your car, the lower the deductibility of car expenses.

Yet plug-in hybrids are now also coming into the spotlight: anyone buying a car that runs on a fossil fuel from 1 July 2023 will enter a phase-out scheme.

Specifically, the tax deductibility of fossil-fuel-powered cars purchased between 1 July 2023 and 31 December 2025 will decrease annually:

Hybrid cars are also subject to another deduction limitation. The fuel costs for those car will be limited to 50% from 1 January 2023, if purchased after that date. Charging costs, on the other hand, will remain 100% deductible in any case.

The message is clear: those who like to buy a car that runs on a fossil fuel should do so for tax purposes before 1 July 2023.

Tip: be careful not to buy a 'fake hybrid'. The battery must have a capacity of at least 0.5 kWh per 100 kilograms of car weight. In addition, emissions must be less than 50 grams of CO2 per kilometre. If this is not the case, the tax authorities will calculate emissions based on the corresponding combustion-engine vehicle.

From the 1st of January 2026

For cars purchased after 31 December 2025 and running (partly) on a fossil fuel, no more costs can be deducted.

With this, a general deduction ban on cars emitting CO2 will apply from 2026. As a result, taxpayers will also no longer be able to use the flat-rate deduction of EUR 0.15/km for commuting from 1 January 2026.

From the 1st of January 2027

Cars that emit no CO2 (electric or hydrogen-powered) purchased before 1 January 2027 will remain 100% deductible. If you buy your car during 2027, the deductibility will be 95% for life. Those buying a car in 2031 will only be able to deduct 67.5% of the cost for the entire lifetime.

From 2035

Europe has decided: from 2035, no new diesel or petrol vehicles can be sold in the EU. Many questions arise around the feasibility of this target. In Belgium, the path towards electric, as described above, is already being paved from 2026.

The mobility budget: autonomy for your employees

With a mobility budget, you give your employees the ability to decide how they travel themselves. The system is based on three pillars. You assign your employees a budget, and the policy defines the choices they have.

The first pillar concerns an environmentally friendly car. It enjoys the same tax and social treatment as a classic company car.

Within pillar 2, the employee can opt for sustainable means of transport and services provided by the employer. These include an (electric) bicycle or scooter, public transport, ...
This pillar is fully exempt from social security contributions and withholding tax. For the employer, this is a fully deductible professional expense.

Finally, in the 3rd pillar, employees can opt for a residual cash balance of their budget.

For the employee, this balance is professional income that is fully exempt from tax but subject to a specific social security contribution of 38.07%.

For the employer, this is a fully deductible professional expense.

Conditions

As an employer, you must have been offering company cars to your employees for at least 3 years before you can grant a mobility budget. An exception to the 36-month waiting period is made for start-ups.

Only employees who have or could have a company car at the time of application can apply for a mobility budget.

Golden tip

We see it happening more and more often: a business owner receives a speed camera fine in the mail, but forgets to report on the 3rd page of the PV who the driver of the car was at that time.

Even if you pay the speeding ticket in that case, you will still receive an additional fine of 509 euros some time later for failing to identify the driver.

Download our manual

To avoid this, we have written a manual that comprehensively frames the procedure of driver identification in case of a traffic fine.

You can download the manual via the button below.