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The electrification of company cars is in full swing. However, anyone who assumes today that electric driving will automatically remain the most tax-efficient option will face an important new reality from 2027 onwards. The Belgian government will gradually reduce the tax deductibility of electric company vehicles to 67.5% by 2031. In doing so, it aims to bring car taxation back into line with the general rules for business expenses after the transition period, manage the impact on public finances and gradually allow the market to continue driving the electrification trend.

At Alphabet, we look ahead. That is precisely why we want to prepare companies today for what lies ahead.

The turning point in 2027: from tax advantage to gradual phase-down

Up to and including 2026, fully electric company cars benefit from a maximum tax deductibility of 100%. However, this will change fundamentally from 1 January 2027.
 

The Belgian legislator has set out a clear path:
 

  • 2027: 95% deductibility
  • 2028: 90%
  • 2029: 82.5%
  • 2030: 75%
  • 2031: 67.5%


In other words, even zero-emission cars will gradually become less attractive from a tax perspective. This is not a minor detail. It is a structural shift that will have a direct impact on your fleet’s Total Cost of Ownership.

Reduction to 95% deductibility: example of an electric company car with a monthly lease cost of € 900
order period deductibility annual lease cost deductible amount vs non-deductible amount
before 2027 100% € 10.800 € 10.800 - € 0
after 2027 95% € 10.800 € 10.260 - € 540

Concrete impact: what does this mean financially?

Let’s make this concrete. Consider an electric car with a monthly lease cost of €900:
 

  • Ordered before 2027 → 100% deductible
  • Ordered from 2027 onwards → only 95% deductible


The difference may seem small, but the impact quickly adds up. For this car, €540 per year is not deductible. At a corporate tax rate of 25%, the additional tax burden is therefore €135 per year. Over a five-year term, this amounts to €675 for one car. For fleets with multiple vehicles, the costs can quickly run into thousands of euros.


Number of cars		 Non-deductible amount
order in 2027 order in 2026
Over 5 years Over 5 years Over 5 years
1 € 540 € 2.160 € 0
5 € 2.700 € 10.800 € 0
10 € 5.400 € 21.600 € 0
15 € 8.100 € 32.400 € 0
20 € 10.800 € 43.200 € 0
Net impact on corporate income tax - additional taxable base x 25% corporate income tax (assumption)
  Additional tax
Number of cars non-deductible amount / year per year* over 5 years
1 € 540 € 135 € 675
5 € 2.700 € 675 € 3.375
10 € 5.400 € 1.350 € 6.750
15 € 8.100 € 2.025 € 10.125
20 € 10.800 € 2.700 € 13.500
* non-deductible amount x 25%

Decide quickly before it is too late

The message is clear: those who wait until 2027 will pay more. Those who order in 2026 will maximise their tax advantage.

This requires clear decisions today. Rather than taking a wait-and-see approach, companies should manage their fleets proactively, because the coming months offer a unique opportunity to:
 

  • still benefit from 100% deductibility;
  • use budgets optimally;
  • avoid structural cost increases.


Companies that take action now:
 

  • reduce their future tax burden;
  • stabilise their TCO in the long term;
  • maintain their competitiveness as an employer.


Conclusion: electrification is here to stay, but the tax rules are changing. Review your fleet planning for 2026 today and make sure you do not miss out on a tax opportunity.

Would you like to receive a tailored lease quote?

Contact us now for a quote for your next lease car(s).

  • Mon - Fri   09.00 - 17.00

  • +32 (0)3 450 18 18 

  • info@alphabet.com
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