As indicated in our newsflash of 16 September 2021, it was agreed in the government declaration to adapt the tax and social legislation around mobility to stimulate the green agenda. On 19 october amendments were made to the draft law, which were adopted by the Finance Commissions on 26 October and approved in the Plenary session of the Chamber on 10 November. The final texts are still to be voted on in the plenary session in Parliament though. The most important amendments are explained below.
The first part of the legislative proposal deals with the changes on the tax treatment of company cars – see our previous headline. What is newly introduced via amendments in the second reading by the finance commission is that the proposal also includes suggested changes to the Law of 17 March 2019 (Law introducing the mobility budget).
Some of the changes foreseen are introduced to make the implementation of the budget easier and more attractive (e.g. additional mobility options are added that can be financed via the mobility budget). The law also provides for some technical changes and drives to bring the law on the mobility budget in line with the proposed changes to the tax law on company cars.
However there are also some new elements foreseen such as the possibility to introduce a definition on how the Total Cost of Ownership (= so called TCO’s and o.a. budget creator) will need to be calculated. The amendment also introduces a minimum and maximum for the budget (with a minimum of EUR 3.000 and a maximum of one fifth of the total gross salary and absolute maximum of EUR 16.000 per calendar year).
As soon as more information is available, we will provide you with an update.