Under current legislation, there would in principle only be tax deductibility available for company cars purchased or leased as of January 1, 2026, if it concerns zero-emission vehicles. As part of the government’s recent ‘Easter Agreement’, the new draft program law however introduces clarity on the future of tax deductibility for hybrid company cars. A new deduction scheme will apply to plug-in hybrids (PHEVs) from January 1, 2026 onwards, aimed at providing a longer transition period for hybrid cars and ensuring a consistent tax regime throughout the entire usage period of the vehicle.
The deductibility of the lease or purchase costs of hybrid company cars significantly reduced as from the summer of 2023. The maximum deductibility for cars ordered after June 30, 2023 dropped from 100% to 75% in 2025 and would disappear completely by 2028.
Based on the new draft program law, the tax deductibility of the costs related to a hybrid company car will no longer decrease in the coming years, but be fixed at a minimum of 75%. This rate will apply for hybrid cars purchased or leased until the end of 2027. In 2028, when the deductibility was originally planned to disappear entirely, it will decrease to 65%, and further to 57.5% in 2029. As of 2030, no tax deduction will be available for newly acquired hybrid vehicles. The percentages will apply throughout the vehicle’s full period of use. When a vehicle changes ownership, the tax regime on the new date of purchase, lease, or rental however applies.
To incentivize the use of low-emission plug-in hybrids, vehicles with a maximum CO₂ emission of 50g/km will benefit from a higher deduction cap under the adjusted formula – calculated as 120% minus 0.5% per gram of CO₂. For vehicles purchased up to December 31, 2026, the result of this formula will be capped at 100% (instead of 75%), and at 95% (instead of 75%) for those purchased in 2027.
Note that CO₂ emissions will need to be calculated according to the stricter Euro 6e-bis standard, which will apply to car models newly introduced in 2025, and to all existing models as of 2026.
Fuel costs for all plug-in hybrid vehicles will remain deductible at 50% until the end of 2027. As of January 1, 2028, fuel costs will no longer be deductible, regardless of the date of the vehicle’s acquisition or lease.
Electricity costs for plug-in hybrids will follow the same deductibility rules as those for fully electric vehicles. The applicable regime will depend on the acquisition date and apply for the entire duration of the vehicle’s use by the buyer or lessee.
For plug-in hybrids purchased from 2018 onwards, the existing anti-abuse rule continues to apply to so-called “fake hybrids”. The CO₂ threshold for this rule has been raised to 75g/km but must be assessed using the new Euro 6e-bis standard. Since this revised standard generally results in higher measured CO₂ emissions for hybrid vehicles, it remains to be seen which models will meet the eligibility criteria.
Finally, we would like to emphasize that, although not included in the draft program law, the federal government intends to impose ,from January 1, 2026, employers to offer a mobility budget to everyone entitled to a company car. This measure will be introduced through separate legislation. Further details to follow.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Philip Maertens
Partner
Nic Boydens
Partner
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