Wheels of change in the mobility sector

The Mobility Budget now mandatory...

... for all companies offering company cars. The Arizona coalition government has announced a significant change to Belgium's mobility landscape. Starting January 1, 2026, all companies offering company cars to their employees will be required to also offer a mobility budget option. This decision marks a significant change in the way Belgian companies approach the benefits of employee transport, offering workers greater flexibility and environmentally-friendly alternatives to traditional company cars. It is now waiting on the official published law to officialise these announced changes.

New rules for Hybrid Electric Vehicles

The government also agreed on loosening the deductibility regulations for hybrids. From January 1, 2026, hybrids that follow the Euro 6e-bis homologation standard will have a higher deductibility than the previous government under the Van Peteghem law had decided.

The deductibility rates of hybrids will change based on emissions:

• True plug-in hybrids (under 50g CO₂/km): The deductibility will follow the EV-regulation. Deductible at up to 100% in 2026, gradually decreasing in subsequent years;
• True plug-in hybrids (50-75g CO₂/km): 75% deductibility in 2026-2027, with decreasing rates afterward until 2030;
• Fake hybrids (> 75g CO₂/km): Will follow the deductibility of diesel and gasoline cars, having a maximum deductibility of 50% and 25% respectively in 2026 and 2027. From 2028 the deductibility will be zero.

The government also decided to change the definition of 'true plug-in hybrid' cars. Previously, these were hybrid cars with CO₂ emissions below 50g CO₂/km. From 2026, 'true plug-in hybrid' cars will be defined as hybrid cars with CO₂ emissions below 75g CO₂/km. This adjustment accommodates the WLTP Euro 6e-bis homologation standard, which provides higher but more accurate CO₂ emission measurements for hybrid vehicles. The standard incorporates a more realistic balance between electricity and fossil fuel use, and tests emissions over longer distances, resulting in more representative (and typically higher) CO₂ measurements.

The deductibility of electricity and fossil fuels use will also change for Plug-in Hybrid Electric Vehicle (PHEVs) starting 2026.

• Electricity: The deductibility will follow the EV-regulation. Deductible at up to 100% in 2026, gradually decreasing in subsequent years;‍
• Fossil fuels: Will be 50% deductible in 2027, and from 2028 it will be reduced to 0%.

PHEVs purchased in 2025 and already approved to the Euro 6 e-bis standard will benefit retroactively from the same tax regime as PHEVs purchased in 2026. In practical terms, this means maximum tax deductibility of 100% for a purchase in 2025.

What this means for you

For employees currently benefiting from a company car, this change opens up new possibilities for commuting and potentially living closer to work. For employers, it means adjusting compensation packages to comply with the new requirements while supporting more sustainable transportation choices. This mobility budget for all initiatives encourages a shift toward lower-emission in the transport sector (which accounted for approximately 22% of Belgium's total greenhouse gas emissions in 2023) and greater flexibility for Belgian workers.

PHEVs will be interesting again for employers to lease or buy, as the deductibility will be the same for PHEV below 50 g CO₂/km compared to EV’s. From the other side the CO₂-conribution will still be higher for PHEV’s compared to EV’s. This means that from 2026, hybrids certified under the Euro 6e-bis standard will benefit from more favorable deductibility rates than previously planned under the Van Peteghem law.

Don't miss the bus! Easily implement the mobility budget for your company starting tomorrow! More info here.