Fuel expenditure 75% deductible
Fuel expenditure is 75% deductible, both for personal tax as for corporate tax purposes. For other car expenditure the same limitation is applicable for personal tax. For corporate tax purposes the deduction of other car expenditure is limited in function of the CO2 emission.
Fuel expenditure always limited to 75%
Fuel expenditure can only be deducted for 75%. This applies to passenger's cars, minibuses, cars for double use and light trucks.
The 75% fuel expenditure limitation does not apply to:
Delivery vans, trucks, tractors, trailers, coaches, motorcycles, ..;
Cars solely used as taxi;
Cars solely used in and by authorized driving schools and which are adapted in this respect;
Cars which are solely rented to third parties.
For these types of vehicles fuel expenditure is fully deductible, both for personal tax as for corporate tax purposes.
Car expenditure limited to 75% for personal tax
For personal tax no difference should be made between fuel expenditure and other car expenditure. Both are deductible for 75%.
The deduction limitation applies to all car related expenditure.
It concerns amongst others:
Depreciations;
Equipment (radio, sunroof, air-conditioning, alarm);
Insurance expenditure (civil responsibility, legal aid, own damage and theft);
Circulation tax, additional circulation tax, excise compensation tax and tax to put the vehicle into circulation;
Contribution to road assistance organizations (VAB, TW, KACB);
Purchase of spare parts, accessories, attachments (fire extinguisher, first aid kit);
Maintenance expenditure (oil change, tuning);
Car wash;
Parking costs, toll for highways, tunnels, ferries, bridges;
Contribution for the technical inspection;
Cost of an in the vehicle integrated GPS.
Car expenditure for corporate tax limited in function of CO2 emission
The less pollution a car is, the higher the deduction percentage. The deductibility of car expenditure is after all based on the CO2 emission.
The CO2 emission of a car can be found on the registration form with the car registration service (DIV). The same information is mentioned on the uniformity certificate. Nevertheless, the CO2 emission mentioned on the registration form is decisive. The Federal Health Service issues an annual guide where the CO2 emission for all new vehicles on the Belgian market can be verified.
The tax authorities however accept that taxi expenditure is deductible for 75%. It is after all difficult to determine the CO2 emission for each taxi.