Hybrid company cars: update on tax rules
August 2025 - The federal government is once again tinkering with company car taxation. However, many entrepreneurs' enthusiasm has quickly been dampened. After all, only self-employed people with a sole proprietorship can still benefit from the tax advantage, and even that is subject to strict conditions.
What sounds on paper like a revival of the plug-in hybrid as a tax-efficient company car turns out to be a poor deal in practice. The scheme only applies to self-employed persons who work as natural persons with a VAT number and who are subject to personal income tax. In short, only “traditional” sole traders can still claim the new deduction scheme.
Entrepreneurs who organise their activities through a company miss out. For them, the hybrid company car remains virtually dead in tax terms. According to the automotive sector federation Febiac, there are still around 190,000 self-employed people in Belgium driving a fossil fuel-powered company car. In principle, they can still benefit from the new rules, provided they make the switch in time.
What about deductibility?
For those who order a plug-in hybrid company car this year, the tax deductibility is as follows: this year, the costs are still 75% deductible (excluding fuel). In 2026, that percentage will drop to 50% and in 2027 to 25%. From 2028 onwards, the benefit will disappear completely for cars ordered today.
Are you ordering a hybrid commercial vehicle after 1 January 2026? Then it will no longer be tax deductible at all. Until recently, this made hybrids unattractive as commercial vehicles, but the government is now partially reviving the old scheme. Depending on CO₂ emissions, the deduction can once again be up to 100%.
But beware: emission figures are set to change significantly in the near future. A new European standard (Euro6e-bis) will require car manufacturers to adjust their official CO₂ figures. These will double or triple, especially for hybrids. It is therefore pointless to speculate about the figures at this stage: the adjusted values will not be available until the end of this year.
How long will the benefit last?
The new regulation is not unlimited. For hybrids with emissions of up to 50 grams of CO₂ per kilometre, the maximum deduction will drop to 95% from 2027 onwards. After that, the percentage will continue to fall each year. If you order a hybrid after 31 December 2029, you will no longer be eligible for any tax deduction.
The year of purchase is crucial. Anyone who orders a plug-in hybrid before the end of this year can count on the higher deduction percentages. As long as the car does not change owners, that percentage will in principle remain valid for the entire period of use.
What about refuelling and charging costs?
Hybrids combine a rechargeable battery with a conventional combustion engine. For the time being, there will be no change in the electricity costs via a charging card: these will be fully deductible until the end of 2026 and will drop to 95% in 2027, as is the case for fully electric cars.
The fuel card for petrol or diesel is a different story. Currently, these costs are still 50% deductible until the end of 2027, but this only applies to cars ordered before the end of this year. For hybrids purchased after 1 January 2026, the fuel card is no longer tax deductible.
Beware of “false” hybrids
Not every plug-in hybrid is eligible. Only genuine plug-in hybrids – cars with a combustion engine and a battery that can be charged externally – are covered by the scheme. Cars with insufficient battery capacity (less than 0.5 kWh per 100 kg) or emissions of more than 200 grams of CO₂ per kilometre are considered “false hybrids”. They are charged an extra high CO₂ value, which largely eliminates the tax benefits.
What does this mean in concrete terms?
For SME entrepreneurs with a company, little will change: hybrid company cars will remain unattractive from a tax perspective. For self-employed people in a sole proprietorship, it may be interesting to order a plug-in hybrid this year, provided it meets the stricter emission standards and is a genuine plug-in hybrid.
