In cooperation with the regional governments, the federal government wishes to expand the charging infrastructure in Belgium. To this end, the federal government is providing tax incentives for private individuals and companies:

• Companies that install charging stations before 31 December 2022 and make them available to the public – for which they can charge a fee – can post the costs of doing so as up to 200% tax-deductible. Companies that install charging stations between 1 January 2023 and 31 August 2024 will receive a 150% deduction.
• Individuals who have a smart charging station installed at home between 1 September 2021 and 31 August 2024 at their own expense can include these costs as tax-deductible expenses up to a maximum of €1,500.

A significant change is also in the pipeline for plug-in hybrids. For models purchased from 1 January 2023, the consumption costs of petrol and diesel will only be tax-deductible up to 50%. This scheme will apply until 1 January 2026.

From the 2026 assessment year (i.e. the 2025 income year), the tax deduction will be systematically reduced for new vehicles purchased from 1 July 2023, and will disappear completely in 2028.

The minimum deduction of 50% (and 40% for cars with emissions > 200g) will disappear from 2025. The maximum deduction is capped and will fall each year: this cap will start to come into effect from 2025 and will stand at 75%, before falling further to 50% in 2026, 25% in 2027 and finally to 0% in 2028.

The calculated CO2 contribution (or solidarity contribution) for all petrol or diesel cars purchased from 1 July 2023 will be increased:

• In 2023: By a factor of 2.25
• In 2024: By a factor of 2.25
• In 2025: By a factor of 2.75
• In 2026: By a factor of 4.00
• In 2027: By a factor of 5.50

Note: The CO2 contribution only applies to people with the status of an employee, not to self-employed persons.

In addition to the announced increase in the calculated CO2 contribution, the minimum CO2 contribution will also be increased. From 2025, this will be as follows:

These amounts are also subject to indexation.

This is perhaps the measure that stands out the most. If you purchase a new car from 1 January 2026, you can only benefit from a tax break if the car is emission-free. In other words, only fully electric company cars are still tax-deductible in the current range. These will be 100% deductible up to and including 2026.

One exception to this rule is that light trucks with a conventional internal combustion engine shall remain 100% deductible.

The commuting allowance of €0.15 per kilometre shall only be deductible if the journey is made using an emission-free car.

Cars selected and used under the mobility budget (this applies to the first pillar (greener cars) and second pillar (soft mobility)) must be emission-free.

Between 2026 and 2031, emission-free cars will gradually become less tax-deductible, falling from 100% to 67.5%. Here the "grandfathering principle" applies: the deduction percentage applicable at the time of ordering shall remain valid for the rest of the term.

What we have described above is a summary of the agreements made by the Council of Ministers. As these agreements have not yet been officially ratified, it is possible that amendments may still be made during parliamentary proceedings. We will keep you informed of any further developments.