From 2024, the tax rules for plug-in hybrid and electric company cars are changing. Currently, both types of vehicles benefit from a 100% tax deduction. This means that companies can fully deduct the costs associated with purchasing or leasing these cars.
However, this favorable situation for plug-in hybrids is set to end. Starting in 2025, the tax deductibility for plug-in hybrid cars will gradually decrease: it will be 75% in 2025, 50% in 2026, 25% in 2027, and will reach 0% in 2028. This means that additional tax costs for companies will increase each year, making plug-in hybrids less and less attractive from a tax perspective.
On the other hand, electric cars purchased or leased in 2024 will remain 100% deductible for their entire period of use, provided they are acquired before the end of 2026. This offers stability and a significant financial advantage in the long term. However, starting in 2027, the tax deduction for new electric cars will also gradually reduce: 95% in 2027, 90% in 2028, 82.5% in 2029, 75% in 2030, and 67.5% from 2031 onwards.
Regarding the CO2 contribution, it applies when the employee uses the car for private purposes, such as commuting. For fossil fuel cars acquired after June 30, 2023, this contribution is multiplied by 2.25, significantly increasing costs. Plug-in hybrids and electric cars, however, continue to benefit from the minimum contribution, making them more tax-attractive for private use.
Our mission in the field of corporate taxation is to help you manage a reasonable tax burden that aligns with your income and the opportunities provided by tax legislation.
