Taxation of car-sharing

The reform of Belgian car taxation, enshrined in the 2021 Law (“fiscal greening”), aims to  steer B2B mobility quickly and radically in the direction of zero emissions. 

This reform also impacts cambio's professional users. Fiscally, car-sharing costs are treated the same way as car hire, and thus fall under the general category of “vehicle expenses”.

1. Variable car-sharing costs

2. Fixed car-sharing costs

Corporate income tax (Ven.B.)

For organisations and companies subject to corporate income tax, a distinction is made between electric (EV) and conventionally powered (Internal combustion engine, ICE) cars.

Electric cars remain 100% deductible. This will decline slightly each year in accordance with the table below:

For ICE cars , the following applies to cambio invoices:

1. Vehicles purchased before 1 July 2023: The original (old) deduction rules continue to apply (gram formula deduction percentage = 120% - (0.5x {number of grams of CO2 per kilometre})

2. Vehicles purchased between 1 July 2023 and 31 December 2025: here, the phase-out scenario applies, whereby the gram formula is limited by a fiscal upper limit.

3. Vehicles purchased as of 1 January 2026: 0% deduction applies to all ICE vehicles purchased after 1/1/2026. 

This 0% deductibility means that the total cost of these journeys is treated as a disallowed expense.

In consequence, the disallowed expense increases the tax base (profit) on which corporate income tax is calculated, thus resulting in an effective tax of 20-25% on the entire expense incurred.

This increase in the effective tax burden requires a review of the cost structure and mobility strategy within the company.

In practical terms: The purchase date and CO2 emissions will be reported for each trip on the cambio invoice, starting in January 2026.This will enable you to perform the breakdown correctly. An average CO2 emission per car class is not allowed by the tax authorities.

Tax on legal entities (RPB)

The tax treatment of entities subject to RPB (including many non-profit organisations) differs fundamentally from corporate income tax (Ven.B.)
Until 2026, car expenses in these legal entities were basically untaxed. For cars purchased by cambio before 1 January 2026, this treatment will be retained. 

For ICE vehicles purchased from 1 January 2026, 100% of car costs will be taxable. This new taxable base is then taxed at a rate of 25% under the RPB.
Costs of EV vehicles purchased by cambio from 1 January 2027, however, will be taxed gradually through the tax on legal entities. 
 

In practice: The purchase date and CO2 emissions will be reported for each trip on the cambio invoice from January 2026. This will enable you to perform the breakdown correctly.

Self-employed / Personal income taxation

Self-employed and independent professionals subject to personal income tax must book their cambio expenses (given the tax classification as a car expense) in proportion to proven professional use. 

The professional use of cambio is then treated in the same way as under corporate law (see above)

Institutions exempt from corporate taxation

Although the tax on legal entities (RPB) applies to most non-profit organisations and foundations, some institutions are explicitly exempted from the application of the RPB and from the new rules on car expense taxes (these entities are listed in Article 220, 1° of the Income Tax Code 1992).

For these institutions, the tax rules, if they apply to car expenses at all, are regulated through specific legislation or administrative instructions outside income tax. This means that the 25% tax on car expenses from 2026, which applies to entities subject to RPB, does not apply to these public organisations unless they engage in commercial activities that would render them subject to corporate income tax.

From 1 January 2026, cambio will offer its invoices to all its corporate customers through the Peppol platform.

Each trip will carry the necessary fiscal parameters (CO2 emissions, purchase date of the car, etc.) enabling the invoice to be processed correctly.

   a. VAT deduction

This is a separate regime and is unrelated to income tax deductibility.  Car-sharing is subject to a maximum VAT deduction of 50%, which must be reduced if the actual professional use is lower.

This 50% cap applies to all car-sharing costs (fixed and variable).

These regulations remain unchanged by the new “fiscal greening” regulations.

   b. Tax treatment of private use paid for by employer (cafetaria plans/benefits in kind)

When a company or organisation assumes the costs of the private use of shared cars (through a fixed contribution, cafeteria plan or other intervention), a benefit in kind arises for the employee. This benefit in kind is treated as earned income and is subject to taxes and social security contributions.

How the tax is calculated depends on exactly what is made available:

1. Benefit in kind in the case of a fixed budget or fixed contribution

This scenario applies when the employer allocates a fixed sum (e.g. €100 per month) that the employee may use for private car-sharing trips (via a private account with cambio).

• This is not a benefit in kind based on the vehicle taxation formula. It is considered a financial allowance for a private expense.
• The full amount (the face value) is ordinary taxable remuneration (wages) and is therefore fully taxed at the normal progressive personal income tax rate (plus social security contributions)

2. Benefit in kind in the case of temporary private use of a shared car paid for by employer

This scenario applies when the employee is allowed to use a company-paid shared car privately for a certain period of time.

• Calculation: the benefit in kind is calculated based on the official car tax formula 
• Pro rata: as this is a temporary provision (and not a permanent company car), the benefit is calculated on a pro rata basis, based on the number of calendar days the car was made available.   This is a theoretical approach that is rarely used in practice. 
• Parameters: the employer must apply the CO₂ emissions, fuel type and age of the car for that specific trip/period.

   c. Mobility budget

The mobility budget divides the budget into three pillars. Pillar 2 includes funding for sustainable means of transport, which explicitly includes car-sharing.

Car-sharing under Pillar 2 of the mobility budget is a fiscally attractive and flexible solution perfectly suited to the modern, combined mobility needs of employees.

One of the biggest advantages of Pillar 2 car-sharing is the complete exemption from social security charges and taxes. This makes it a financially interesting choice for the employee.

The legislation aims to steer all motorised mobility options, both in terms of purchase and shared mobility, towards zero emissions. This is why only EVs are available under the second pillar of the mobility budget, where they neatly complement other sustainable transport means.

   d. Professional use via employee's private account

In some cases, cambio is used for business travel via an employee's personal account. Tax deductibility is very limited in such a case, making this an exceptional scenario.

VAT is not deductible in this case. Hence the use of cambio for such purposes is certainly not fiscally encouraged.

The fiscally correct and recommended practice is for the employer to fully reimburse the employee for the cost. This reimbursement is treated as a reimbursement of expenses proper to the employer.

In this case, the reimbursement is non-taxable in the hands of the employee (as it obviously not a benefit in kind) and is deductible by the employer as a car expense, within the limits of the CO2 formula of the cambio car in question.

Note: Split-billing is not possible!