Green shift in corporate tax: What non-profits need to know about car costs from 2026
30/06/2025
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From January 1, 2026, significant changes are on the horizon for non-profits in terms of car taxation. Car costs that have so far been exempt from corporate tax (CT) will now be taxed in certain cases. This measure is part of the broader greening of the vehicle fleet and applies to all legal entities subject to CT, with the exception of public institutions.
What exactly is changing?
For the first time, car costs for a non-profit can lead to a tax assessment. This is a break from the past, where such costs were always exempt. Specifically, car costs will be taxed at 25%, except when it comes to financing costs (interest). These remain excluded from taxation.
Important: the new regime only applies to cars purchased, leased, or rented from January 1, 2026.
Cars with CO₂ emissions: immediate impact
For vehicles that still emit CO₂ (such as petrol, diesel, or hybrid cars), the costs will be fully taxable from 2026. The tax applies to all associated costs: depreciation, leasing, fuel, insurance, maintenance, road tax, etc. Indirect car costs such as mileage allowances and reimbursed taxi rides via an expense report are also included.
Note: vehicles purchased or leased before January 1, 2026, remain fully exempt from car cost tax after that date.
Emission-free vehicles: gradual tax build-up
For electric and hydrogen vehicles, a gradual tax is introduced. Those who purchase or lease such a zero-emission car from January 1, 2027, will see their taxability increase annually:
- From 2027: 5% taxable
- From 2028: 10% taxable
- From 2029: 17.5% taxable
- From 2030: 25% taxable
- From 2031: 32.5% taxable
Here too, emission-free vehicles purchased before the end of 2026 remain fully exempt from tax on their costs.
What does this mean for your non-profit?
Due to the new tax rules, it is crucial to make thoughtful choices when purchasing or leasing vehicles by a non-profit. Both the timing of the investment and the type of vehicle (emission-free or not) can significantly influence your organization’s tax burden.
Is your non-profit considering purchasing a vehicle in the short term? It may be advantageous to do so before the end of 2025, as long as car costs remain untaxed.
Our experts are ready for you
Our specialists are ready to work with you to see how you can optimally organize the mobility of your non-profit from a tax perspective, fully tailored to the needs of your organization. Contact our experts without obligation, they will be happy to help you.
This article was written by Matthias Verbueken.