Tax benefits for electric cars in the period 2020-2025

3 October 2019 - The tax benefits for electric cars will continue to exist in the coming years. Until 2025 no motor vehicle tax will be payable on an electric car. As of 2020, the contribution to the taxable income for company electric cars will increase. Despite this increase, the additional tax rate for electric cars will still be lower than for petrol and diesel cars.

Company car

If a "company car" is also used for private purposes, the business driver pays tax on it: the so-called additional tax. From 1 January 2020, the contribution to the taxable benefit for fully electric leased cars will be gradually increased. In 2020, the contribution to the list price of the car will increase from 4% to 8%. Is the list price higher than €45,000? Then from €45,000 a 22% contribution applies. In 2019 this will apply from €50,000.

For cars registered for the first time in 2019, a contribution of 4% to the list price will apply up to €50,000 and 22% above that.

The table below shows the contribution percentages as from 2019.

Year

Contribution 1st part

Residual contribution

2019

4% over 1st €50,000

22% from €50,000

2020

8% over 1st €45,000

22% from €45,000

2021

12% over 1st €40,000

22% from €40,000

2022 to 2025

From 2022 onwards, the percentage of contribution to the first €40,000 will increase. From 2026 onwards, there will be no difference between electric and ordinary company cars.

Want to know more?

Do you want to know more? Please get in touch with your regular contact at Mazars or contact Erik Burghout directly by email or phone on: +31 (0)88 277 22 40. He will be happy to help you.

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