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New tax regime 2020: the impact on your electric vehicle fleet

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The car tax regime for company cars will change in 2020. There will also be changes for electric cars. What is the impact if you have electric vehicles in your fleet? Athlon gives an overview.

Almost all car makes today have one or more models with an electric engine in their range. These cars are subject to tax rules that will also make it particularly advantageous in 2020 to expand your fleet with electric models. 

Purchase premium

In October, the Flemish Government abolished the purchase premium for electric cars as of 1 January 2020. But if you order an electric vehicle by 21 December 2019 at the latest, you can still apply for the premium until 31 October 2020. You will find the exact amounts online

The zero-emission premium only applies to individuals and the self-employed as natural persons. Anyone who registers a car in the name of a leasing company or a legal entity does not receive a premium. 

Tax-deductible

The tax deductibility of electric cars will be reviewed in 2020. Up to 31 December 2019, cars with an electric engine will still be 120 percent tax-deductible. From 1 January 2020, this percentage will be limited to 100 percent. Charging costs are also 100-percent deductible. 

Lower contributions

In the Flemish Region, cars with an electric engine are exempt from the investment tax (BIV) and the traffic tax. In Brussels and the Walloon Region, the minimum amount applies: 

  • EUR 61.50 for the BIV
  • EUR 83.56 for the annual road tax

Benefit in kind

The new WLTP standards also change the benefit in kind (BIK). For 100 percent electric cars, it remains simple, by definition 4 percent of the catalogue value is used. The employee takes on six sevenths. 

The employer, on the other hand, is not exempted from taxes. It must pay the so-called refused expenses that cannot be deducted from the taxes on operating income. That’s 17 percent of the BIK. If the company bears all or part of the charging costs for the private use of the car, this percentage rises to 40 percent.

Charging stations

The installation and use of the charging stations are also financially advantageous, both on the premises of a company and in the homes of employees. Companies can conclude an agreement with the tax authorities for specific benefits or lower electricity rates. Employees can then charge their car for free on the company premises or use public charging stations and a charging card provided by their employer. The cost of such a charge card is taken into account when calculating the benefit in kind.

The electricity that employees use at home to charge their cars can be fully refunded thanks to split billing. This only requires a wall box or the installation of a specific circuit.

More information about the new car tax regime can be found in our free white paper. Or contact our Strategic Consulting Manager Frédéric Denies to help you define your mobility trajectory for the coming years and to take the decisions that best suit your company.


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