The rules of the game surrounding company cars have changed dramatically in recent years. What tax treatment will gasoline, diesel, plug-in hybrid & electric cars have as of 2026?
In this article, we clearly outline the main points of interest.
What is meant by a company car?
The term ‘commercial vehicle’ refers to passenger cars, dual-use cars and minibuses.
Vans (light freight) are outside the tax rules below, and follow their own deduction regime. Light trucks retain a maximum tax deduction amounting to 100% on corporate income tax this year as well, and this regardless of fuel type.
Electric cars in 2026
Do you order an electric car (or hydrogen car) in 2026? Then the cost Regarding this car for the entire useful life 100% deductible. Starting in 2027, the deductibility for newly ordered electric cars decreases step by step.
Important: it deduction rate is Fixed in the year of purchase/lease and thereafter remains valid for the full period of use.
| Date of purchase, lease or rental | Tax deduction (full duration) |
| Before 01/01/2027 | 100% |
| In 2027 | 95% |
| In 2028 | 90% |
| In 2029 | 82.5% |
| In 2030 | 75% |
| As of 2031 | 67.5% |
Fuel and hybrid cars in 2026
Orders your company as of January 1, 2026 A fuel car or (plug-in) hybrid? Then the cost Regarding this car no longer deductible on corporate income tax.
| Order from 01/01/2026 | |
| Car Costs | Fuel costs |
| 0%
|
Gasoline/diesel cost: 0% Electricity : 0 % |
Caution: for self-employed persons (individuals with corporate numbers, subject to personal income tax) is a special regime applicable. For that, read our article with all info on the tax treatment of hybrid cars for the self-employed.
For passenger cars with internal combustion engines that ordered between July 1, 2023 and December 31, 2025 were the existing degressive deduction regime remains in place.
For these cars, tax deductibility continues to be phased out as follows:
| Order from 01/07/2023 to 31/12/2025 at the latest | ||
| Car Costs | Fuel costs | |
| Decreasing maximum deductibility through the useful life | ||
| AJ 2026 (FY as of 01/01/2025) | Max. 75% | Gasoline/diesel costs: max. 50% Electricity: max 100% |
| AJ 2027 (FY as of 01/01/2026) | Max.50% | Gasoline/diesel costs: max. 50% Electricity: max 100% |
| AJ 2028 (FY as of 01/01/2027) | Max. 25% | Gasoline/diesel cost: max. 25% Electricity: max 100% |
| AJ 2029 (FY as of 01/01/2028) | Max. 0% | Gasoline/diesel cost: 0% Electricity: max 100% |
What tax incentives do companies that invest in charging infrastructure enjoy?
Companies who invest in charging infrastructure by 2026 can do so no longer enjoying specific tax favor measures.
Small businesses however, can still appeal to the regular investment deduction in the amount of10%for charging station infrastructure on their company site.
What if your company reimburses the charging fees?
- Exemption benefit all nature:the granting of a charge card or reimbursement of home charging fees does not count as an additional benefit.
- Smart charging stations required: refund of electricity charged at home can only be done for electricity consumed through a smart charging station with a communication system.
At what rate can charging fees be reimbursed?
Reimbursement of loading charges to employees and company directors may be subject to the CREG rate happen.
The most recent rate can be found on the CREG website.
Do you have questions about the tax impact of your company car?
Contact our tax experts for personalized advice. Together we will ensure that you are fully prepared for the fiscal challenges of 2026!