What type of car should I buy? Via your company or privately?

Fossil fuel cars only

1. Tax disadvantages :
   • Time-limited, declining deduction of expenses:
     • 75% by 2025,
     • 50% in 2026,
     • 25% in 2027,
     • Total disappearance after 2027.
   • Advantages of all kinds (ATN) rising steadily, due to the reduction in average car emissions (transition to electric vehicles).

Hybrid cars

1. Disadvantage :
   • The deduction of expenses is subject to the same restrictions as for fossil-fuel cars, and will disappear from 2028.
2. Advantage :
   • Lower NTA thanks to low CO2 emissions.

Electric cars

1. Tax benefits :
   • Full deduction of costs and depreciation for the company, with no time limit.
   • Low NTD (minimum CO2 threshold of 4%), decreasing with vehicle age.

Buying a car privately and lending it to your company

1. Disadvantage :
   • All expenses are borne by the private buyer, with no possibility of tax deduction (except for commuting).
2. Advantages :
   • Possibility of financing the purchase with a low-cost loan from your company.
   • No taxation on a NTD.
   • Possible compensation with a tax-exempt mileage allowance (currently €0.4293/km quarterly or €0.4415/km annually).
   • Exemption on any profit on resale of the car.

Conclusion:

To maximize tax benefits, it is advisable for the company to purchase an electric car, offering a 100% expense deduction and reduced NTD. Alternatively, purchasing a car privately and collecting a mileage allowance may be an interesting option, depending on the context.