What Tax Deductibility Applies to Hybrid Cars in Belgium? Comprehensive PHEV & Hybrid Guide

Plug-in hybrid electric vehicles (PHEVs) long served as the transition choice for Belgian company car fleets. However, federal corporate tax legislation has fundamentally changed: a 50% cap on fossil fuel expenses, an accelerated phase-out schedule reducing deductions to 0% by 2028, and substantial social security contribution multipliers.

1. Genuine vs Fake Hybrid Classification

Under Article 65 of CIR 92, a plug-in hybrid only retains low-emission tax status if certified emissions are ≤ 50 g CO₂/km and battery storage equals at least 0.5 kWh per 100 kg curb weight. Failing either threshold triggers reclassification as a 'fake hybrid'.

2. The 50% Fossil Fuel Deduction Cap Since January 1, 2023

For any PHEV ordered on or after January 1, 2023, deductions for petrol or diesel fuel purchased at the pump are strictly capped at 50%, regardless of the vehicle's general deductible rate. Recharged electricity remains deductible at the vehicle's standard rate.

3. Corporate Tax Phase-out Schedule (2025 - 2028)

• Tax year 2025: Deductions capped at 75%.
• Tax year 2026: Deductions capped at 50%.
• Tax year 2027: Deductions capped at 25%.
• Tax year 2028 onwards: 0% deduction (disallowed expense).