Adjusted deduction scheme for plug-in hybrids

The government has agreed to extend the deductibility of plug-in hybrids until 2029, but the new "Euro 6e-bis standard" imposes stricter CO2 emission criteria. As a result, the threshold for classifying a vehicle as a "true" plug-in hybrid has risen from 50 g CO2 to 75 g CO2 per kilometre.

This AI-generated translation may contain errors and should not be considerd legal advice. For accurate info, refer to the Dutch or French version or consult your Securex Legal Advisor.

Are these measures already official?

No, they are not yet official. This article discusses a measure from the coalition agreement that has yet to be enacted into law. Until the legislative process is completed, the proposed measure may still change and does not possess legal authority. Through Lex4You, we will keep you updated on any further developments.

According to several media sources, the government has reached an agreement to limit the favourable tax regime below for hybrid company cars to self-employed individuals (natural persons with a VAT number who pay personal income tax). This is not yet official, and there is no further news at this time.

A stricter standard for determining CO2 emissions

As of January 1, 2025, newly launched plug-in hybrids must comply with a new and stricter standard for calculating their CO2 emissions, known as the “Euro 6e-bis standard.” This change is necessary because plug-in hybrids tend to emit more CO2 than they theoretically promise.

The Euro 6e-bis standard offers a more accurate representation of actual emissions. These vehicles will now undergo Real Driving Emissions (RDE) tests in addition to laboratory tests, which measure emissions under real driving conditions.

Consequently, the measured CO2 emissions of hybrids will significantly increase.

From 2026, all newly sold PHEVs must comply with this standard, even if their model was approved prior to 2025.

The impact on real and false plug-in hybrids

The distinction between “real” and “false” hybrids will be maintained. However, the threshold for classifying a hybrid as false will be raised from 50 to 75 grams of CO2 per kilometre for vehicles whose emissions are calculated according to the new Euro 6e-bis standard.

What is the current deduction scheme for plug-in hybrids?

To promote the greening of the vehicle fleet, the government has established the following limited deductibility for hybrids purchased, leased, or rented between July 1, 2023, and December 31, 2025:

75% in 2025
50% in 2026
25% in 2027
0% in 2028

What does the adjusted deduction scheme look like?

As many employers and companies are not yet prepared to transition to a fully electric fleet, the federal government is making plug-in hybrids fiscally more attractive again for companies and employers.

The previously planned deductibility has been put on hold, and a longer transition period will be introduced. The adjusted scheme is as follows.

Plug-in hybrids ordered from January 1, 2025, that comply with the Euro 6e-bis standard

CO2 EMISSIONS OF VEHICLE	DEDUCTION PERCENTAGE
Less than 50 g/km	Application of formula: 120% - (0.5% x CO2/g), with a ceiling equal to that for electric vehicles 2026 max. 100% 2027 max. 95%
Between 50 g/km and 75 g/km	2026: 75% 2027: 75% 2028: 65% 2029: 57.5% 2030: 0%
More than 75 g/km (vehicle = “false hybrid”)	Formula: 120% - (0.5% x CO2/g) With application of CO2 emissions of the corresponding vehicle on fuel or CO2 emissions x 2.5

Transitional measure for plug-in hybrids purchased before January 1, 2018

CO2 EMISSIONS OF VEHICLE

DEDUCTION PERCENTAGE

Less than 50 g/km

Application of formula: 120% - (0.5% x CO2/g), with a ceiling equal to that for electric vehicles

2026 max. 100%
2027 max. 95%

More than 50 g/km

2026: 75%

2027: 70%

2028: 65%

2029: 60%

2030: 55%

2031: 50%

What about fuel and electricity costs?

Despite the adjusted deduction scheme for plug-in hybrids, the government continues to encourage purely electric driving.

Thus, the fuel costs of hybrid cars remain 50% deductible in 2026 and 2027, but will be completely abolished in 2028.

The electricity (charging costs), on the other hand, remains deductible like electric vehicles, specifically:

2026: 100%
2027: 95%
2028: 82.5%

What does Securex do for you?

Are you considering whether a plug-in hybrid will be beneficial for you or your company in the coming years? Do you wish to learn more about company cars and their total cost of ownership (TCO)? If so, please contact Consulting at consultinglegal@securex.be. They can assist you in calculating your company car fleet.