Employee: Fiscal aspects of company cars in 2025

The Belgian tax landscape for company cars will change in 2025, with a clear shift towards electric cars. The focus is on the greening of the fleet, with significant differences in tax treatment between fossil-fuelled company cars and electric vehicles (EVs).

Benefit In Kind (BIK): the basics

BIK is the taxable benefit employees pay for private use of their company car. The calculation depends on:

• The catalogue value of the vehicle.
• The age of the vehicle.
• The vehicle's CO₂ emissions.

In 2025, the tax benefit for company cars with an internal combustion engine will decrease further due to higher CO₂ coefficients. This makes fossil cars more expensive for employees. In contrast, electric company cars have no CO₂ emissions, leading to significantly lower BIK, equal to the minimum of 1.650 euros per year.

Electric company cars: more fiscally advantageous

The tax advantages for electric cars are clear:

1. Lower BIK: Because electric vehicles hardly emit any CO₂.
2. Reimbursement of charging costs: Employers can reimburse charging costs for home charging, without additional BIK. Thanks to Circular 2024/C/77, this is tax-exempt if done via kWh metering or fixed CREG tariff. In the first quarter of 2025, these tariffs are:

• Flemish Region: 28.22 eurocent/kWh
• Brussels region: 32.94 euro cent/kWh
• Walloon Region: 32.56 eurocent/kWh

These tariffs will be adjusted quarterly.

3. Charging station costs: installation of smart charging stations at employees' homes are exempt from additional Benefits In Kind.

Fossil fuels: heavier charges

Company cars with petrol or diesel engines become more expensive due to:

• Higher BIK calculation: CO₂ coefficients rise, resulting in higher taxes.
• Less deductibility for employers: The tax deduction of fuel costs for non-electric cars decreases.

Impact on the employee

Employees with an electric company car will enjoy in 2025:

• A lower monthly tax burden due to lower BIK.
• Possible reimbursement of home charging costs with no additional benefit in kind.

Those still using a fossil-fuelled company car will find that the net cost increases. This encourages employees and employers to switch to electric vehicles. Below is a sample comparison of two new cars ordered in 2025:

Electric car: Volvo EC40, 62,600 euro list value, 0 g/km Co2

Diesel car: Alfa Romeo Stelvio, 61,700 euro list value, 145 g/km Co2

BIK electric car = 2,146.29 euro in 2025

BIK diesel car = 7,456.89 euros in 2025

In this example, when choosing the diesel car, the employee pays about 5,000 euros more in taxes in 2025 compared to choosing an electric company car.

Conclusion

In 2025, tax regulations offer clear advantages for electric company cars. The lower BIK, combined with the possibility of reimbursing charging costs, makes electric driving more attractive than ever. Employees should consider switching to an electric company car, while employers benefit from tax deductibility and a greener fleet.

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