To meet Europe's 2030 climate goals, the fiscal rules of the game considerably. If you are considering purchasing a new company car in the near future, it is best to order it before a certain date as these cars remain subject to the existing car cost deduction regime for the entire term.
These are the following boundary dates:
- Hybrid cars (WLTP value = 50): order before 01/01/2023
- Fossil fuel cars: ordering before 01/07/2023
- Electric cars: ordering before 01/01/2027
The future tax regime will be linked to the date of purchase, lease or rental of the vehicle. As was the case in the past with such changes, company cars already ordered but not yet delivered at that time will also be considered purchased. For leases and rentings, the date the lease or rental contract is entered into will be considered.
If you ordered your car after the applicable limit date, the government envisions a phase-out scenario in which the deductibility of your car will go down (significantly) each year with no cost deduction available for fossil-fuel or hybrid cars starting in tax year 2029.
For purchases, rentals or leases between Jan. 1, 2023 and July 1, 2023 of a hybrid car, the existing deduction formula continues to apply, but the gasoline or diesel will only be deductible for up to 50%.
Only pure electric cars will still be tax deductible in the long run. If the electric car in question is purchased, rented or leased before Jan. 1, 2027, the cost will be fully tax deductible for the entire period of use of the vehicle. For purchases, rentals or leases after Jan. 1, 2027, the tax deductibility will gradually decrease to 67.50% for purchases, rentals or leases after Jan. 1, 2031
For commercial vehicles already in your business, nothing changes regarding tax deductibility.
Publication date : 25/11/2022