New car taxation for legal entities in 2026: what changes should you take into account?
February 2026 - Since 1 January 2026, the tax treatment of car expenses for legal entities (such as non-profit organisations, international non-profit organisations and private foundations) has changed significantly. Vehicles are no longer exempt from corporate tax.
This measure is part of the federal government's broader policy to make mobility greener. Anyone investing in a vehicle fleet today would therefore be wise to look ahead and correctly assess the tax implications.
Car expenses now subject to corporation tax
The essence of the reform is simple: from 2026 onwards, car expenses will be subject to corporation tax at a fixed rate of 25 per cent. This applies to all expenses related to passenger cars that are included in the accounts. These include depreciation, leasing and rental costs, fuel, insurance, road tax, maintenance and repairs.
It is important to note that the measure focuses on the costs themselves, not on the ownership of a vehicle. As soon as car expenses appear in the accounts, they are in principle eligible for taxation.
Difference between cars with and without CO₂ emissions
The legislator makes a clear distinction between vehicles with CO₂ emissions and emission-free cars. For cars with a combustion engine, the regulation is strict: all car costs for vehicles purchased, leased or rented since 1 January 2026 are fully taxable at 25 per cent.
For emission-free cars, the government has opted for a gradual approach. Taxability will only start in 2027 and will then increase step by step. Anyone who purchases or leases an electric car in 2027 will only see 5 per cent of the car costs taxed. That percentage will increase annually:
· From 1 January 2028: 10% of car costs taxed at 25%
· From 1 January 2029: 17.5%
· From 1 January 2030: 25%
· From 01/01/2031: 32.5%
In this way, the legislator wants to continue to encourage the transition to more sustainable mobility, without completely losing sight of the fiscal reality.
What if you already ordered a car in 2025?
Legal entities that ordered, leased or rented a car with a combustion engine before the end of 2025 are subject to a transitional arrangement. In that case, the current tax treatment will remain in place and car costs will not be taxed under corporate income tax. The date of order or contract conclusion is crucial in this regard.
For vehicles purchased from 2026 onwards, the choice of an electric car is clearly more advantageous from a tax point of view. This is because the tax on car costs for zero-emission vehicles will only be introduced gradually (see above), which means that the tax burden for these cars will be considerably lower.
Reimbursed costs and allowances remain unaffected
Not all mobility costs are covered by the new scheme. Travel allowances and car costs reimbursed to employees, volunteers or other third parties are expressly excluded from corporation tax. This includes, for example, mileage allowances for the professional use of a private car. This clarification was confirmed at the end of 2025 in a circular (2025/C/71) and provides additional legal certainty for entrepreneurs.
Even when a vehicle is made available, the taxable car expense may be reduced by the benefit in kind or by a personal contribution from the user.
No changes to benefits in kind
Important to know: benefits in kind remain unchanged. If a company car is also used privately or for commuting, that benefit must still be correctly applied and taxed for the user. The new car tax regime does not change this.
