- Phase
- Law on the mobility budget
- Native name
- Loi concernant l'instauration d'un budget mobilité
- Type
- Company incentives to deploy electric vehicles
- Added to database
- 15 April 2021
Article
Article 3 §1 and §2; Article 4 §1; Article 6; Article 8 §1
25 NOVEMBER 2021. - Wet houdende fiscale en sociale vergroening van de mobiliteit (1)
Description
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.
Citation
Eurofound (2021), Belgium: Company incentives to deploy electric vehicles, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/company-incentives-to-deploy-electric-vehicles/belgium