Legal entities subject to the legal entities tax (such as NPOs, international NPOs and private foundations) will face an additional tax on car expenses starting in 2026.
The existing rules around the benefit in kind, the legal entities tax and the NSSO solidarity contribution remain in place, but are supplemented by this new federal measure committed to greening the car fleet.
1. What vehicles are we talking about?
The new rules apply to virtually All vehicles used by associations, including:
- passenger cars for unpaid passenger transport;
- Mixed-use vehicles (people and goods);
- minibuses for five to nine passengers;
- and light vans considered passenger cars by the administration.
2. What are the current tax game rules?
2.1. Benefit of all kinds
When the legal entity makes a car available for private use or commuting, the employee or director is taxed on a lump sum benefit of any kind. This benefit is calculated based on the catalog value, age of the car, CO₂ emissions and a correction factor.
Any personal contribution reduces the taxable benefit. This rule does not apply to pool cars used exclusively for professional purposes.
2.2. Taxability in corporate income tax on benefit in kind
The legal entity is taxed in the legal entities tax on a percentage of benefit in kind. This amounts to 17% of the benefit, or 40% If the non-profit organization also assumes private fuel costs.
The amount is indicated under code 5206 and is taxable to 25%. This scheme will continue to exist alongside the new tax on car expenses from 2026.
2.3. NSSO solidarity contribution
When a legal entity provides a passenger car for private use to a employee, the employer is a monthly solidarity contribution (also called CO₂ contribution) is due. The amount of this contribution depends on the CO₂ emissions of the vehicle, fuel type, date of ordering or leasing, and an annual indexing coefficient.
Calculation of solidarity contribution:
- Gasoline: ((CO₂ emissions × 9) - 768) / 12 × indexing coefficient
- Diesel: ((CO₂ emissions × 9) - 600) / 12 × indexing coefficient
- LPG/CNG: ((CO₂ emissions × 9) - 990) / 12 × indexing coefficient
- Electric/hydrogen: Fixed minimum amount per month (indexed annually)
For vehicles ordered, leased or rented from July 1, 2023, the result of the above formula is multiplied by a factor that continues to increase in future years:
- 2.25 as of July 1, 2023
- 2.75 as of Jan. 1, 2025
- 4.00 as of January 1, 2026
- 5.50 as of Jan. 1, 2027
Important:
- For electric vehicles applies a fixed minimum monthly amount (e.g., €23.41 from 2025, €25.99 from 2026, etc.).
- For drivers and pool cars without private use no solidarity contribution is due, provided that private use is excluded and provable.
- If the CO₂ emissions are not known, the calculation is made using a flat-rate value (182 g/km for gasoline, 165 g/km for diesel).
- The contribution is payable regardless of whether the employee pays a co-payment for the use of the car.
3. What will change starting in 2026?
3.1. New tax on car expenses starting in 2026
For vehicles purchased by the taxpayer before January 1, 2026 have been purchased, leased or rented, the existing tax regulation in effect and no additional tax is due on car expenses.
For vehicles with CO₂ emissions that are as of January 1, 2026 are purchased, leased or rented, car costs are fully loaded to 25% in the legal entities tax.
For zero-emission vehicles applies a staged taxation, as shown in the chart below.
Tax treatment of car expenses beginning in 2026:
|
Year of purchase/leasing |
Fuel cars (CO₂ emissions). |
Electric cars (emission-free) |
|---|---|---|
|
before 01/01/2026 |
No additional tax on car expenses. |
No additional tax on car expenses |
|
as of 01/01/2026 |
Car expenses (depreciation, garage costs, maintenance, etc.) are taxed at 25%. |
No additional tax on car expenses |
|
as of 01/01/2027 |
" |
5% of car expenses taxed to 25% |
|
as of 01/01/2028 |
" |
10% of car expenses taxed to 25% |
|
as of 01/01/2029 |
" |
17.5% of car expenses taxed at 25% |
|
as of 01/01/2030 |
" |
25% of car expenses taxed to 25% |
|
as of 01/01/2031 |
" |
32.5% of car expenses taxed at 25% |
Note: The date of the purchase order or contract is decisive, not the delivery date. This new tax is in addition to the existing tax on the benefit in kind.
3.2. Specifically, what does this mean for my non-profit, not-for-profit or private foundation?
Car tax reforms have a direct impact on the strategic choices of associations and foundations. If you are an asbl still have a fuel truck wishes to purchase, it is appropriate to purchase these to be ordered no later than December 31, 2025. Indeed, starting Jan. 1, 2026, tax breaks for fuel cars will be eliminated and car expenses will be fully taxed.
For vehicles that as of 2026 are purchased, it is clearly more fiscally advantageous to choose a electric vehicle. Indeed, the tax on car expenses for zero-emission vehicles is only phased in gradually, so the tax burden for these cars is significantly lower.
In short, a timely and thoughtful choice of fleet can make a significant difference for your nonprofit on the tax front.
Do you have questions about the tax impact of these new regulations? Would you like tailored advice for your non-profit organization?
You can always contact any of our pro experts for a personal explanation and guidance. That way you can be sure of the right choices and an optimal tax strategy.