The recent "Arizona" government agreement in Belgium introduces new fiscal measures that significantly impact the deductibility of company vehicles. These measures aim to accelerate the transition to a carbon-neutral vehicle fleet and include both a gradual phase-out of tax advantages for combustion engine vehicles and incentives for zero-emission vehicles.
Gradual Phase-Out of Tax Deductibility for Combustion Engine Vehicles
For combustion engine vehicles purchased between July 1, 2023, and December 31, 2025, tax deductibility will be gradually reduced. Specifically, the deduction percentage will decrease each year starting in 2025:
- 2025: maximum 75%
- 2026: maximum 50%
- 2027: maximum 25%
- From 2028 onwards: 0%
This means that from 2028 onwards, costs related to such vehicles will no longer be tax-deductible. For vehicles purchased before July 1, 2023, the current deduction rules will remain applicable throughout their fiscal lifespan.
Incentives for Zero-Emission Vehicles
To encourage the adoption of electric and hydrogen-powered vehicles, the agreement includes favorable tax incentives. Zero-emission vehicles purchased before January 1, 2027, will benefit from a 100% tax deductibility. After this date, a gradual reduction mechanism will be implemented to prompt businesses and individuals to accelerate their transition to greener alternatives.
Conclusion
These new measures reflect the Belgian government's ambition to reduce CO₂ emissions and promote the electrification of the vehicle fleet. For businesses and individuals, it is essential to consider these fiscal changes when purchasing a new vehicle to maximize the available benefits.
