Tax relief for plug-in hybrids? Only for self-employed

Let's go back to the beginning: what was the plan?

The federal government had earlier announced that plug-in hybrids (PHEVs) would be 100% tax deductible again from 2026. A scheme very similar to the favorable regime currently in place for fully electric cars. In 2027, this maximum deductibility would slightly decrease to 95%, depending on the CO₂ emissions of the vehicle. This measure would undoubtedly have given a strong boost to the popularity of PHEVs. But the European Commission ultimately put a stop to it.

Why is Europe intervening?

In 2021, Belgium committed, as part of the European recovery plan, to accelerate the greening of its company car fleet. A clear choice towards zero-emission mobility. In return, Belgium is entitled to billions of euros in European support measures.

A sudden relaxation for plug-in hybrids would, according to Europe, contradict these agreements. Moreover, the impact of PHEVs on emissions in practice is often less favorable than on paper, especially when users mainly drive on the combustion engine. In short: due to the planned relaxation, Belgium risks missing out on hundreds of millions of euros in European subsidies. And that is something the federal government obviously wants to avoid.

What has now been decided?

Finance Minister Jan Jambon has now confirmed that the tax relief for plug-in hybrids will not apply to companies. Only the self-employed will be entitled to the higher deductibility. The reason? The self-employed often have fewer options to switch to fully electric mobility. Think of self-employed without staff, liberal professions, or small entrepreneurs who do not always have access to a feasible electric solution yet. The self-employed specifically refers to natural persons with a VAT number who pay corporate tax.

So nothing changes for companies: they continue on the path to a fully electric fleet. Plug-in hybrids remain subject to the stricter tax phase-out that was previously announced.

It is important to know that the favorable tax regime only applies to “real” hybrids. From 2026, all PHEVs will be homologated according to the Euro 6e-bis standard. What this standard entails can be read here.

PHEVs homologated according to this standard must meet two conditions to be considered a “real” hybrid: the CO2 emissions must be a maximum of 75 g/km and the energy capacity must be at least 0.5 kWh/100 kg of car weight. PHEVs that do not meet these conditions are considered “false” hybrids and do not benefit from the favorable regime.

What does this mean for your mobility policy?

Those thinking today about the composition of the future fleet should take this decision into account. For companies, fully electric driving remains the clearest and fiscally most advantageous choice for the coming years.

At Ayvens, we are of course closely monitoring these developments. As soon as new details or clarifications arise, you will hear from us. Meanwhile, if you want to know which electric vehicles are most interesting within your fleet, feel free to contact your account manager. We are happy to help you with a sustainable, future-oriented, and fiscally smart mobility plan.