Advice for the self-employed: car taxation is changing in 2023!

As a result of increasingly restrictive environmental standards, the vehicle fleet is changing rapidly. Company vehicles are not being spared when it comes to the necessary transition to carbon neutrality. It was in this context that the 'Van Peteghem' law, named after the Federal Minister of Finance, was passed with the aim of greening the Belgian fleet. Major changes are expected to the company car scene. As from 1 July 2023, new tax deductibility conditions will be applied depending on the type of vehicle and its date of purchase. In order to encourage the sale of electric cars, a tax break will be possible for any charging station installation (see below) for individuals and companies alike.

The current rules will continue to apply to all combustion vehicles (including hybrids and plug-in hybrids) purchased before 1 July 2023. For those acquired between 1 July and 31 December 2025, a specific measure will come into force with a maximum tax deductible of 75% in 2025, 50% in 2026, 25% in 2027 and... 0% in 2028. However, for any combustion engine vehicle ordered from 1 January 2026 onwards (excluding motorbikes and utility vehicles), you can forget about any deductibility.

In terms of electric vehicles, those purchased in 2026 will be 100% deductible. Nevertheless, please bear in mind that this deductibility will decrease each year: 95% for a zero-emission vehicle ordered in 2027, 90% in 2028, 82.5% in 2029, 75% in 2030 and only 67.5% in 2031.

For hybrid cars acquired from 1 July 2023, the deductibility of fuel costs (petrol or diesel) will be capped at 50%. In order to encourage the use of the electric motor, for example the use of plug-in hybrids, electricity costs will not be subject to this limitation.

For the self-employed, liberal professions and companies, the installation of a charging station is deductible at 200% until the end of 2022 and at 150% until 2024 for depreciation over 5 years. However, the terminal must be smart, supplied with green energy and accessible to the public for part of the day.