What the Arizona coalition means for mobility

The new coalition agreement brings sweeping changes to corporate mobility. The rules around the mobility budget and the tax treatment of hybrid cars are being adjusted, with the aim of greater flexibility and simplicity in legislation.

Mobility budget for all

The mobility budget will now become a standard option for everyone with a company car. This logically means that the current three-year waiting period will disappear, and that it will no longer be required to have at least one company car within the company.

In addition, the legislation will be simplified so that the mobility budget will now cover all mobility expenses for both commuting and private travel. This could mean the disappearance of the so-called ‘three-month rule’. Commuting allowances would thus always fall within the mobility budget. Professional travel, however, can probably still be reimbursed separately.

It is still unclear how this scheme will work for employees without entitlement to a company car. Although they will also have access to a mobility budget in some form.

The return of the hybrid company car

Hybrid cars will again become tax advantageous for employers. Until the end of 2027, the tax deductibility of hybrid cars will remain at a maximum of 75%. After that, it will gradually decrease, following the same trajectory as that of electric company cars. An exception rule applies to hybrid company cars with CO₂ emissions of up to 50 g/km: they can enjoy a higher tax deductibility than 75% until the end of 2027.

The deductibility of fuel costs for hybrid cars will be set at 50%, while charging costs will follow the scheme of fully electric cars.

Implementation and impact

The reforms in the mobility budget will be implemented gradually, meaning that the full effect will only be seen over several years. In contrast, the changes to the tax treatment of company cars may come into effect sooner. The government aims to simplify mobility and tax rules but whether these adjustments will actually lead to less administrative complexity remains to be seen in practice. Although the broad outlines are established, not all details are yet known. Further information is expected in the coming months.