Belgium has published a tax bill on 27 February 2026, revising deduction rules for company cars acquired before 1 January 2026, with sliding-scale rates for older vehicles and specific provisions for hybrids. The legislation also introduces changes to stock exchange transaction taxes and long-term savings requirements.

RF Report

Belgium has published a tax bill in the Official Gazette No. 2026001286 on 27 February 2026, introducing various technical updates, notably revising the deduction rules for company cars purchased, leased, or rented before 1 January 2026.

This bill outlines the 2026 Law on Miscellaneous Fiscal Provisions as enacted by the Belgian Federal Government. It details a wide range of legislative amendments to the Belgian tax code, specifically targeting the Code of Diverse Duties and Taxes and the Code of Registration, Mortgage, and Court Fees.

Key updates include significant changes to vehicle taxation and the deductibility of professional costs for corporate cars based on carbon emission levels, which are scheduled to take effect between 2026 and 2028.

Car taxation 

For vehicles purchased, leased, or rented before January 1, 2026, the standard deduction rate is calculated using the following formula: 120% – (0.5% × coefficient × grams of CO2/km).

The coefficient varies by engine type:

  • 1.0 for diesel engines.
  • 0.95 for other engines.
  • 0.90 (potentially lower) for natural gas engines with less than 12 fiscal horsepower.

Minimum deduction rates for older vehicles

For vehicles purchased before 1 January 2018, the law establishes a sliding scale of minimum deduction rates for future assessment years.

Assessment year Minimum deduction rate
2026 75%
2027 70%
2028 65%
2029 60%
2030 55%
2031 onwards 50%

Hybrid and electric vehicles

For rechargeable hybrid vehicles purchased between 1 July 2023 and 31 December 2025:

  • Electricity costs remain 100% deductible.
  • Fuel costs (petrol or diesel) are limited to a maximum of 50% deductibility.
  • Other costs are calculated via the formula but are capped at 75% unless the vehicle emits no more than 50g CO2/km.

Changes to various duties and taxes

The law introduces specific administrative and substantive changes to the Code of Various Duties and Taxes, particularly concerning stock exchange transactions and long-term savings.

  • Stock exchange transactions: Operations involving Belgian or foreign public debt securities performed by the General Administration of the Treasury or the Federal Debt Agency are specifically categorised. Additionally, refund requests for these taxes will not be processed if the amount is less than EUR 10.
  • Long-term savings: A new requirement mandates that a statement showing the tax base must be submitted no later than the day of payment.
  • Administrative fees: For stateless persons in Belgium applying for nationality, the registration fee is reduced to EUR 150.