The deductibility from corporate income of expenses related to the use of company cars will be calculated on the basis of CO2 emissions. This measure will encourage to buy vehicles with zero or low emissions as a company car.
All company cars are liable to two different types of taxes, a registration tax and a vehicle tax. The former, amounting to €50, must be paid on any newly registered car. The latter is calculated by multiplying three elements together: (1) the value of the CO2 emissions in g/km; (2) a value of 0.9 for cars with a diesel engine, or 0.6 for cars with a non-diesel engine; and (3) a value of 0.5 for vehicles whose CO2 is less than 90 g/km, increasing by 0.1 for each additional 10g of CO2.
- Transport end-uses
- Road transport
- Commercial Vehicles