- Phase
- Income tax act 2001 (2021)
- Native name
- Wet inkomstenbelasting 2001 (2021)
- Type
- Company incentives to deploy electric vehicles
- Added to database
- 21 April 2021
Description
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.
Citation
Eurofound (2021), Netherlands: Company incentives to deploy electric vehicles, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/company-incentives-to-deploy-electric-vehicles/netherlands