The text of the government declaration already indicated that it was the intention to modify the tax treatment of company cars by 2026 and move to zero emission vehicles. To make this ambition a reality, the Belgian Minister of Finance, Vincent Van Peteghem, has now announced to make work of this initiative.
The Minister stated that the approach taken will be a phased approach with attention to the currently existing contracts in order to guarantee certainty. The coming years the tax treatment of company cars will evolve and tax deductions will only be allowed for car costs related to zero-emission cars as from 2026. A cool down period is foreseen for carbon emission cars purchased as from 2023 where the tax deductibility decreases to zero.
To reach the objective of a green fleet, the government will give a tax incentive to deploy charging infrastructure in Belgium. The investment in a charging station at home will entitle to a tax reduction in the personal income tax return. Investments made by companies for charging facilities will be incentivized by allowing an increased tax deduction for the coming years.
To decrease the number of cars on the road and stimulate other means of transportation, the Minister of Finance also indicated that they are planning to change the Mobility Budget. The Mobility Budget will be made user friendly to incentify employees even more to hand in their company cars and make use of other means of transportation.