New agreement: Cheaper electric company cars
The government, the Social Liberal Party, the Green Left and the Red-Green Alliance have adopted an agreement to change the tax rules if you drive electric and plug-in hybrid cars from 2023. The overall objective is to make it more attractive to have an electric car as a company car.
Extras and deductions
The government has adopted a new agreement that from 1 January 2023 until and including 2026, electric cars will have an allowance of DKK 15,000 per year, and plug-in hybrid cars an allowance of DKK 30,000 per year.
We do not yet know how these allowances will be brought into effect – whether it is in the new car price/acquisition cost, whether it should be distributed over months in the taxable value (as we saw it with allowances for plug-in hybrids in 2021) or something else entirely. This can have a major impact on the employee’s taxation, depending on the method used.
In addition to presenting tax changes for drivers of electric and plug-in hybrid cars, employers can offer tax-free charging of private cars at work.
Likewise, state co-financing of charging points in housing associations has been agreed, to which a pool of almost DKK 100 million and DKK 6 million will be allocated to the Knowledge Centre for Charging Infrastructure.
Presented as a bill
The agreement must be adopted in the Danish Parliament after the summer holidays before it comes into force. When a bill is introduced, we will have more knowledge of the details of the upcoming legislation, after which LeasePlan Denmark will inform further about the details.
The agreement is an extension of the “Green transition of road transport” agreement from December 2020.
You can read more about this on the Danish Ministry of Taxation’s website below (in Danish).