Restructuring legislation

In Belgium, employers can provide a mobility budget as long as their employees renounce the company car they already had or could claim. With the mobility budget, the worker can finance the supply of environmentally friendly company vehicles like full-electric cars or cars with CO2 emissions under 95 g/km. Battery electric vehicles are 100% company tax deductible. The law also promotes sustainable transport modes. Any expenditure made by the employee within this pillar is fully exempt from social security contributions and withholding taxes:

• soft mobility: cycles and motorcycles
• public transport: subscriptions (for the distance from home to work and on behalf of the worker) and public transport tickets
• sharing solutions: car-pooling and car-pooling solutions, taxi services and chauffeur-driven car rental services, rental of self-driving vehicles (maximum 30 days per year)
• housing costs (rents and interest on a mortgage): if home is established within 5 kilometres of the usual place of work

A new law with additional adjustments was formally signed on 3 December 2021. From 1 January 2022, the new law introduced some changes to the system to ensure that employers and employees would use it more often. Concretely:

• The 12-month waiting period was be abolished. This means that the employee who is promoted to a position for which they are eligible for a company car will not first have to drive it for 12 months before they can exchange it within the mobility budget.
• Additional clarity was created regarding the calculation of the mobility budget. More specifically, the annual amount of the mobility budget is a minimum of 3,000 euro and a maximum of one fifth of the total annual gross salary, with an absolute maximum of 16,000 euro.

Until 31 December 2021, any profit-making company with a registered office or establishment in France, and which uses or owns certain vehicles in the country, must pay the company car tax (TVS, Taxe sur les Véhicules de Société). TVS has been abolished since 1 January 2022. It has been replaced by 2 taxes on the use of vehicles for economic purposes, which will be payable in 2023 for the previous year. The aim of this change is to encourage all economic players to use more clean vehicles and to dispose of their most polluting vehicles. In addition, the introduction of these new taxes modernises the rules for calculating what was the old TVS. The two taxes on the use of vehicles for economic purposes are: * the annual tax on carbon dioxide emissions; * the annual tax on the age of passenger vehicles. Taxes on the use of vehicles for economic purposes are annual, unlike the TVS which was calculated and declared every quarter. The tax period runs from 1 January to 31 December each year. These taxes are paid for the use made of the vehicle in the previous year. These new taxes are calculated on the basis of the number of days the vehicle is used during the year, whereas the old TVS was based on the number of quarters the vehicle was used. Each of these 2 new taxes is calculated as follows: (length of time the vehicle is used in France for business purposes/number of days in the calendar year) x annual tax rate. For each of the taxes for which they are liable, companies must now keep an annual summary statement of the vehicles assigned to their business and falling within the scope of the taxes on the use of vehicles for economic purposes.

In Germany, charging electric vehicles at the workplace is not deemed a taxable benefit in kind. Therefore, employees who use the charging infrastructure and charge for free at the workplace will not have to pay taxes and security contributions on that advantage. Charging infrastructure of the employer temporary given to the employee is also not classified as a taxable benefit. Free charging infrastructure that becomes the property of the employee will be taxed at a flat-rate tax of 25%. The same tax rate may be applied for subsidies for charging infrastructure granted by employers.

The resolution on ‘non-deferred tasks arising from climate change’ approves the governmental climate and nature protection plan and related energy policy strategies. The purpose of the plan and strategies is to adapt to climate change, improve energy efficiency and decrease the carbon emission in electricity production. Strategic measures to achieve the goals include to encourage the deployment of solar capacity, enhance low carbon electricity production, increase the number of electric buses and promote the uptake of electric vehicles. A fund of €92 million is to be granted to support small and medium enterprises to switch to energy production from using renewable sources. In October 2022, government decree 397/2022 on the promotion of clean and energy-efficient road transport vehicles was adopted as a legal equivalent of Directive (EU) 2019/1161, amending Directive 2009/33/EC. The decree lays down rules for the purchase, leasing or renting of clean vehicles through public procurement in the period of July 2021 to the end of 2025 (first phase).

In 2023, Transport Malta launched 8 grants, with the aim of decreasing polluting internal combustion engine (ICE) vehicles from Maltese roads. These include a scheme intended to incentivise registered businesses, companies, and the general public to purchase new electric vehicles, with an associated scrappage scheme providing financial support to applicants who couple their purchase with the deregistration of a vehicle of any category 10 years or more from its year of manufacture. This scheme is made possible by RRP funds amounting to €15,000,000. Purchasers of electric vehicles registered during 2022 who did not avail themselves of any related grants in 2022 can also apply under this scheme. The total maximum grant allocated to registered businesses and companies for this purpose, under the DeMinimis Rules, is of €200,000. Undertakings performing road freight transport for hire are eligible for the maximum sum of €100,000. This incentive allows a mix and match of replacement of old vehicles and purchase of new electric vehicles and pedelecs. This incentive encompasses a wide range of vehicle types: new passenger cars; vehicles used for the transportation of goods; minibuses; coaches; quadricycles; motorcycles; pedelecs. The amount of grant allocated per electric vehicle ranges from a minimum of €500 to a maximum of €70,000 per vehicle, under the De Minimis State Aid Rules; if undertakings cannot apply under the De Minimis regulations because are not eligible under the said regulations, or because they exceed applicable thresholds, may apply for the incentive under the General Block Exemption Regulation (GBER), where the maximum grant is €400,000 per vehicle. For the comprehensive list which specifies the amount allocated according to the set criteria, one could visit Transport Malta's online portal. Another scheme, aimed at persons and undertakings, supports the retrofitting of battery electric powertrains on motor vehicles, specifically: passenger cars; vans; vehicles used for transporting goods; minibuses; buses; coaches. The National Government budgeted funds for this scheme amounting to €50,000. The grant amounts to 80% of the installation costs. The 2022 grant for the purchase of Plugin Hybrid Vehicles (PHEV) is closed except for vehicles ordered by 31st May 2022. The current schemes came into effect on the 1 January 2023 and will be open till 31 December 2023. There are plans to renew such schemes on a yearly basis as it is considered a key strategy for the Maltese government to reach carbon neutrality by 2050. Apart from this grant scheme, companies that opt for electric vehicles benefit from cheaper registration tax on their vehicles. The registration tax of non-electric vehicles is calculated on the euro standard, CO2, particulate matter (diesel engines only) and length. The following formula is used: (registration value x CO2 x %) + (registration value x length (mm) x %). Since electric vehicles have no emissions, the first part of the formula is not applicable and therefore the registration tax of an electric vehicle is calculated solely upon the length, the percentage according to the length, and the registration value. Another initiative aimed at smoothing the transition to electric vehicles is the availability of a number of free electric charging stations. According to Malta’s Low Carbon Development Strategy, the government is planning to install a total of 6,500 charging stations across the islands by 2030. 

Two forms of tax benefits are available for the use of low- or zero-emissions vehicle (ZEV) as company cars or private vehicles. 1. Income tax rates In the Netherlands, the use of company cars for private use is taxed. However, a more favourable rate of income tax is available for people who use low- or zero-emissions company cars for private use. In 2021, the addition for an electric car will increase to 12% of the first €40,000 catalogue value. If the price of the car is higher than €40,000, the normal addition rate of 22% applies to the excessive part. In 2022, the addition will increase to 18% on the first €40,000. In 2023, the addition for electric cars is 16% of the first €30.000 catalogue value. If the price of the car is higher than €30.000, the normal addition rate of 22% applies to the excessive part. For a hydrogen car or an electric car with integrated solar panels, the lower addition rate applies to the entire list price, provided that the car meets the definition that applies in 2020 for the environmental investment deduction. For example, the battery pack shall not contain lead and the solar panels must have a capacity of at least 1 kilowatt peak. 2. Tax-deductible investments Clean technology investments are partially deductible from corporate and income taxes. ZEVs and Plug-in Hybrid Vehicles (PHEVs) (excluding those with diesel engines) are on the list of tax-deductible investments, as are the accompanying charging points.

Electrical vehicles are exempted from part of the import duty that applies to all motor vehicles. As import duties tend to be relatively high in Norway compared to EU countries, this exemption is meant to be a push factor for companies and individuals to choose electrical vehicles to vehicles with an internal-combustion engine. While all vehicles has to pay a one-off registration tax based on the wight of the vehicle, they are expected from the general part of this duty that is calculated based on the vehicle's tax group, kerb weight, CO2 emissions, NOx emissions and cylinder capacity. For a vehicle of 1600 kg and CO2 emission of 160 g/km, the tax would be around NOK 220,000 (€ 22,000). The tax is progressive, making big cars with high emissions more expensive than smaller cars. For electrical vehicles costing up to NOK 500,000 (€ 50,000), no VAT duty applies, and for those exceeding this price, the duty is only imposed on the part of the price exceeding this threshold. Electrical vehicles are also exempted from the value added tax act when it comes to sale and leasing agreements running for at least 30 days. 

This law is part of environmental taxation reform in Portugal and establishing a set of green fiscal rules in the sectors of energy and emissions, transport, water, waste, land use, forests and biodiversity. This law provides a set of tax reductions for sectors including low emissions vehicles (Law 82-D/2014 of 31 December).  The Dispatch 5126/2023 of 3 May continues the incentive to decarbonise individual mobility, started in 2017 (Decree Law 42-A/2016 of 12 August) amended the previous conditions for the companys' incentives. In 2023, the Portuguese Government’s Environmental Fund has allocated €10,000.000 to incentive Electric Vehicles (Dispatch 5126/2023 of 3 May). For the companies the incentives are:

• €6,000 for the purchase of an electric light goods vehicle (in 2020 the amount was €2,000), limited to 2 vehicles per candidate;
• 50% of the purchase value price (up to a maximum of 1500€) for the purchase of an electric freight bicycle, limited to four per candidate;
• 50% of the purchase value price (up to a maximum of 500€) for the purchase of a fully electric bicycle, moped or motorcycle, limited to 4 per candidate.
• 20% of the purchase value price (up to a maximum of 100€) for the purchase of a conventional city bike.

Companies that invest in green energy vehicles benefit from some of the following tax incentives:

• Corporate tax deduction for company fleets with EVs (if value price not exceed €62,500).
• BEVs with a purchase value price up to €62,500 are exempt from autonomous corporate income tax. The BEVs that exceed this amount (€62,500), began to be taxed autonomously at a rate of 10%, since 1 January 2023.
• BEVs are exempt from Circulation Tax (Imposto Único de Circulação)
• Plug-in hybrid vehicles are eligible for reduced autonomous corporate income tax, that varies between 2.5% (for vehicles with a purchase price below €27,500) and 15% (for vehicles with a purchase price below €35,000).

Purchase of electric vehicles intended for the pursuit of business activities are exempted from paying VAT and income tax on perquisites. The exemption also applies to fuels, lubricants, spare parts and services. Generally, the ‘taxable person’ cannot deduct value added tax on passenger cars and motorcycles other than vehicles used for goods and passenger transport, leasing, renting, resale and education. Amended Value Added Tax, issued on 7 January 2022, stipulates an exception for motor vehicle not emitting carbon dioxide. To be eligible for tax deduction, the company must meet three conditions: - The vehicle must be carbon dioxide-free; deduction thus applies only to electric cars, not hybrids. - The value, including VAT and other taxes, does not exceed EUR 80 000. - The electric vehicle must be used for business purposes only (the car, used exclusively for private purposes, is not eligible). If a vehicle is for both business and personal purposes, the taxable person must pay VAT on the distance driven for personal use on a pro rata basis. On the other hand, the amended Personal Income Tax Act (ZDoH-2), issued on 21 March 2022, establishes that the use of a business electrical automobile for personal purposes is not perquisites, and the employee pays no income tax in this regard.

The Ordinance (2019:525) has introduced a state grant to support the installation of charging points for electric vehicles. Material costs to install a charging point, such as the cost of a charging box, will be eligible for the grant. Labour costs are eligible under certain restrictions. Grants may be given as a lump sum with an equivalent value up to 50% of the eligible costs, but a maximum of SEK 15,000 (€1,482) per charge point. Grants may not be given for measures that are to be implemented under obligatory requirements. The grant is administered by the Swedish Environmental Protection Agency.