The Belgian federal government is pursuing its fleet greening strategy, initiated by the law of November 25, 2021, by introducing new tax measures that will gradually come into force between 2025 and 2031. These reforms are designed to encourage the adoption of low-emission vehicles and reduce the tax benefits granted to polluting vehicles.
From January 1, 2026, vehicles powered partly or wholly by fossil fuels (gasoline or diesel) purchased, leased or rented will no longer be tax-deductible. This measure applies to new purchases made after this date, with no retroactive effect on vehicles already in circulation.
Plug-in hybrid vehicles (PHEVs) will see their tax deductibility progressively reduced:
– 75% for vehicles acquired up to the end of 2027
– 65% in 2028
– 57.5% in 2029
– 0% from 2030 onwards
These rates will apply for as long as the vehicle is used by the same owner or lessee.
For hybrid vehicles, fuel costs (gasoline or diesel) will remain 50% deductible until the end of 2027. From 2028, these costs will no longer be deductible. On the other hand, electric recharging costs will continue to benefit from the same deductibility as for 100% electric vehicles.
Article 36, §2, of the Income Tax Code (CIR 92) will be amended to incorporate the Euro 6e-bis standard. For vehicles purchased after January 1, 2018 complying with this or a later standard, the CO₂ emissions cap used to calculate the “benefit in kind company car” will rise from 50g to 75g.
Vehicles purchased, leased or rented before January 1, 2018 will benefit from a guaranteed minimum tax deduction of 75% from January 1, 2026, in accordance with a safeguard clause provided for by the adaptation of Article 550, paragraph 3, of CIR 92.
These measures are designed to encourage the adoption of low-emission vehicles and reduce the carbon footprint of the Belgian car fleet.
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