From 2024, the tax rules for plug-in hybrid and electric company cars will change. Currently, both types of vehicle benefit from a 100% tax deduction. This means that companies can fully deduct the costs associated with purchasing or leasing these cars.
However, this advantageous situation for plug-in hybrids is coming to an end. From 2025 onwards, the tax deductibility for plug-in hybrid cars will start to decline gradually: it will be 75% in 2025, 50% in 2026, 25% in 2027, and will reach 0% in 2028. This means that the additional tax costs for companies will increase each year, making plug-in hybrids less and less attractive from a tax point of view.
On the other hand, electric cars purchased or leased in 2024 will remain 100% tax-deductible throughout their useful life, provided they are purchased before the end of 2026. This offers stability and a significant financial advantage over the long term. However, from 2027, the tax deduction for new electric cars will also be gradually reduced: 95% in 2027, 90% in 2028, 82.5% in 2029, 75% in 2030, and 67.5% from 2031.
The CO2 contribution will apply when the employee uses the car for private purposes, such as commuting. For fossil-fuelled cars acquired after 30 June 2023, this contribution will be multiplied by 2.25, significantly increasing costs. Plug-in hybrids and electric cars, on the other hand, will continue to benefit from the minimum contribution, making them fiscally more attractive for private journeys.
Our mission in the field of corporate taxation is to help you manage a reasonable tax burden that aligns with your income and the opportunities provided by tax legislation.
