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Government incentives 2023
Purchase subsidies
Bonus system for long-term purchase or financial lease (>two years) for passenger cars and LCVs with CO2 emissions between 0 and 20 g/km:
> This purchase incentive for EVs is €3,000 for vehicles under €47,000 (passenger cars).
> Those over €47,000 will not receive any compensation (passenger cars).
> The purchase incentive for e-LCVs is €4,000 (e-LCV and hydrogen LCV). Environmental bonus is higher for private customers:
> Electric passenger car with 0 g CO2 /km <€47,000: €5,000 (capped at 27%of the purchase price).
> Electric or hydrogen LCV with 0 g CO2 /km <€47,000: €6,000 (capped at 27% of the purchase price).
For individuals whose taxable income per tax unit is €14,089 or lower, bonus is €7,000.
Registration tax benefits
Fully electric vehicles and plug-in hybrids are partially or fully exempt from registration fees.
Ownership tax benefits
The accounting depreciation ceiling is raised for EVs at €30,000 versus € 18,300. For ICE vehicles and PHEVs, the ceiling is raised to €20,300 versus €18,300.
Company tax benefits
> Corporate vehicle tax is only applicable to passenger cars and is based on two components. The first component is based on CO2, and the second component is based on fuel type and age of vehicle). EVs & PHEVs are exempt from this tax.
> A reduction of 50% on the benefit-in-kind (BIK)tax. The amount of this allowance is capped at €1,800 per year.
> The BIK calculation is based on 9%of the acquisition price of the car or 30%for leasing cost until end 2024.
Other financial benefits
> Electricity costs paid by the employer are not considered in the calculation of BIK tax until end 2024.
> Non-deductible depreciation: For passenger cars and some mixed-use vehicles with a value including VAT that is higher than the cap, the part of the lease price corresponding to the excess depreciation must be added back in the tax income or loss. But batteries of electric and electric hybrid vehicles are not considered if their price appears on the vehicle’s invoice.
Non-deductible depreciation cap is determined by two elements: date of purchase and CO2 emissions per km.
Local incentives
Some regions offer additional bonuses to SMEs and private owners.
Infrastructure incentives
Advenir premium stopped for corporates, 30%tax credit and reduced VAT (5.5%) on installation of charging infrastructure (for single house and condominiums) for individuals.
