Tax evolution for 2026 for Fleet and Mobility

Tax evolution for 2026 (Fleet):

Government subsidies linked to EVs (BEVs and PHEVs)

• Currently no plans for any form of subsidies for BEV and PHEVS for Business and private customers

Changes in taxation and Benefit in Kind calculation

• Still no benefit in kind for 100% BEV vehicles

• For 100% BEV company cars: employers need to reimburse the actual kWh usage through wallboxes (with MID standard) or smart charging cables

  • Until 31.12.2025, employers could reimburse drivers with a lump sum of €30 per month while charging at home

  • Starting January 1^st 2026, an average energy price of €0,328 per kWh can be reimbursed tax free by the employer

• Deduction for travel expenses: The annual lump sum for commuting between home and the office or workplace has been raised to €496. This benefit applies to all employees.

  • This amount is automatically deducted from the wage tax

• Commuter Allowance (Pendlerpauschale): Employees residing at least 20 kilometers from their workplace are eligible for a wage tax deduction of €6 per kilometer.

  • This does not apply to company cars provided by an employer.

• It depends on the distance between home and office, as well as whether public transport is available.

Legislative Changes Affecting Fleets and Fleet Management

Road Tax Increase: For new vehicle registrations, road tax will be raised and is integrated into the insurance payment process.

• Internal Combustion Engine (ICE) vehicles will see an average annual road tax increase of approximately €35 compared to 2025.

• Plug-in Hybrid Electric Vehicles (PHEVs) may face stricter CO2 emission measurement standards, potentially resulting in higher taxation.

• Battery Electric Vehicles (BEVs) will continue under the current tax regime, with road tax determined by vehicle weight and kilowatt-hour capacity.

• Increase of Consumption tax for new registrations (Tax depending on CO2 emissions)

  • BEV and most PHEV are exempt from tax

  • Tax calculated based on combined WLTP value in g/km

  • Higher CO2 emissions equals higher tax

Support for EV Charging Points for Companies and Employees

B2B:

• Subsidies are available for public or private smart charging stations.

• Stations must deliver a minimum of 50 kW, with current kWh pricing clearly displayed.

• Publicly accessible stations must accept payment by credit or debit card.

• All supplied energy must be sourced from 100% renewable sources.

• A maximum of 30% of investment costs may be reimbursed.

B2C:

• Subsidies are provided for smart wallboxes and smart charging cables.

• Up to 50% of the purchase price can be reimbursed.

• For example, a reimbursement of €400 is available for a smart cable or home wallbox.

Tax evolution for 2026 (Mobility):

Mobility for employees & Specific legislation promoting sustainable mobility

Deduction for Travel Expenses: The annual lump sum for commutes between home and the workplace has increased to €496. This deduction applies automatically to all employees through wage tax reductions.

This measure often compensates for the cost of annual public transportation tickets, particularly in urban areas. For employees living outside major cities, the commuter allowance is available in addition to the standard travel expense deduction.

As a result, employees may be able to offset not only public transport fares but also potentially generate a modest financial advantage when using these services. In the eastern federal states near Vienna, costs associated with private car or company vehicle use, as well as taxi rides, can be significantly reduced—subject to factors such as industry and individual circumstances.

Employers also benefit from decreased expenses.

Requirement for Companies to Provide Mobility Solutions or Budgets

Public Transport Tickets: Depending on the federal state, public transport tickets supplied by employers are considered company expenses and are therefore exempt from incidental wage costs.

Tax Evolution for 2026 (Fleet)

Updates to Taxation and Benefit in Kind (BIK) Calculation:

• Taxation: Vehicles with CO2 emissions will no longer be fiscally deductible. However, electric vehicles (EVs) ordered in 2026 will continue to be 100% fiscally deductible throughout their period of use by the same owner or lessee.
• Benefit in Kind (BIK): The annual revision and update of reference CO2 emission values and minimum BIK amounts will proceed as usual for BIK calculations.
• BIK Regulation Change: Effective January 1, 2026, in line with Euronorm Euro6e-bis standards, plug-in hybrid electric vehicles (PHEVs) emitting 76 g/km CO2 or more will be classified as "Fake PHEVs," whereas previously, this threshold was set at 50 g/km under earlier Euronorm standards.

Tax evolution for 2026 (Mobility):

Employee Mobility

• The Federal Mobility Budget framework provides for regular annual indexation of both maximum and minimum budget limits.

Legislation Supporting Sustainable Mobility

• Under the Federal Mobility Budget, only electric vehicles are permitted within pillar 1, as well as for shared and soft mobility options.

Obligation for Companies to Offer Mobility Solutions/Budgets

• Effective January 1, 2027, employers must offer the Federal Mobility Budget to employees who qualify for a company car. Small and medium-sized enterprises (SMEs) with 15 to 50 FTEs are exempt from this obligation until January 1, 2028.

Tax evolution for 2026 (Mobility):

Government subsidies linked to EVs (BEVs and PHEVs): Chile offers reduced vehicle registration costs and tax exemptions for electric vehicles. E.g., electric buses and trucks may qualify for government support under the Ministry of Energy’s electromobility initiatives, which promote fleet electrification.

Changes in taxation and Benefit in Kind calculation: While Chile has yet to implement significant changes to personal taxation or Benefits in Kind specific to EVs, discussions around incentives for company-provided EVs are ongoing, especially for fleet vehicles. Current tax benefits primarily focus on the avoidance of fuel tax.

Other legislative changes impacting fleets and fleet management: The Green Tax Law imposes higher fees on high-emission vehicles and industries, encouraging fleet operators to transition to electric or hybrid vehicles. The government is also considering tightening emission regulations to reduce the carbon footprint of corporate fleets.

Specific support for EV charging points for companies and employees: Chile provides subsidies for charging infrastructure projects via the Ministry of Energy or via private companies. These subsidies encourage companies to install chargers in commercial or residential locations, benefiting employees and customers.

Tax evolution for 2026 (Mobility):

Mobility for employees: Chile lacks of mandatory mobility benefits for employees but encourages sustainable practices through corporate sustainability programs.

 Legislation promoting sustainable mobility: The Chilean government actively promotes electromobility and sustainable transport, including the National Electromobility Strategy, which aims for 100% of public transport and 40% of private vehicles to be electric by 2040. Specific laws, such as extended warranties for EV batteries, aim to support the growth of the EV market.

Imposition for companies to offer mobility solutions/budgets: While there are no direct mandates for companies to provide mobility budgets, the Extended Producer Responsibility (EPR) Law encourages sustainable corporate practices. Incentives for incorporating EVs into corporate fleets align with the government’s broader climate goals.

Tax evolution for 2026 (Fleet):

Currently, there are no subsidies or direct financial incentives available for companies or private individuals in the Czech Republic. Subsidies for electric light commercial vehicles (eLCVs), heavy-duty vehicles, and cargo bikes are limited to public entities such as public companies, cities, and municipalities; personal cars are not eligible.

The annual highway vignette price for ICE vehicles has increased to 2,570 CZK (106 EUR). For PHEVs, the price is now 640 CZK (26 EUR). BEVs and FCEVs will remain exempt from this charge for the final year.

In line with EU legislation, new regulations effective 1 January 2026 will permit vehicles equipped with an approved Level 3 autonomous driving system to operate on specified roads—such as highways and multi-lane roads featuring separated traffic directions, limited intersections, and predictable traffic—without the driver holding the steering wheel. The driver must remain prepared to resume control upon system request within a designated timeframe. To date, no vehicle has received official approval for Level 3 autonomy.

Support for electric vehicle (EV) charging points is available for private individuals through subsidies for the installation of an AC wallbox, provided it forms part of a substantial household renovation including solar panel installation. No subsidies are currently offered for company charging infrastructure.

Tax evolution for 2026 (Mobility):

There is no governmental legislation on sustainable mobility or mobility for employees. It is regulated on a municipal or company level. For example, Prague has its own comprehensive plan to promote sustainable mobility through support of public transport modernization incl. electric buses, bike riding, walking, carsharing, digital solutions for smart cities, etc.

All activities are co-financed from EU sources with the goal to create a sustainable, safe and affordable transport system that reduces emissions and improves the quality of life in and outside cities.

Tax Evolution for 2026 (Fleet):

Government subsidies associated with electric vehicles (BEVs and PHEVs)

Currently, Denmark does not offer direct purchase subsidies for company cars, whether they are BEVs or PHEVs. The primary incentive is the reduced registration tax available for low- and zero-emission vehicles. For battery electric vehicles (BEVs), the registration tax continues to be phased in incrementally and will rise steadily until 2030; however, BEVs maintain a substantial advantage over internal combustion engine (ICE) vehicles. Plug-in hybrid electric vehicles (PHEVs) receive less favorable tax treatment than BEVs, facing higher registration taxes due to CO₂ emission calculations and fuel consumption considerations.

Tax Evolution for 2026 (Fleet):

Benefit in kind taxation in 2026

Employee and their family can use the employer’s car and this gives rise to a taxable company car benefit. The tax is based on the registration year and list price of the car. Car benefits are divided into two types: unlimited and limited benefit. Unlimited benefit includes all costs regarding usage of the car, fuel and/or electricity as well. Limited benefit includes other car-related costs than fuel and/or electricity.

The Finnish Government supports electrification strongly during years 2021-2029 as they have introduced a tax deduction scheme for “zero emission” company cars. EV support will be available until end of 2029. “Low emission” company car support for vehicles with co2 emissions 1-100 g/km was available only until end of 2025. The amount of the taxation value deduction was 85 € per month in the years 2021-2025.

For EVs registered from 2020 for the first time, the taxable value is reduced by 170 €/month as well as a reduction of 120 €/month from the operating costs in unlimited benefit. There is an additional reduction of 60 € per month for plug-in hybrid or CNG car from operating costs of unlimited benefit. 

Electric car purchase price does not include any car tax. All other fuel types include car tax based on the WLTP co2 emissions. For example, car tax for normal PHEV vehicles is less than a couple of thousand euros and car tax for normal diesel vehicle is three times higher. With the new Euro 6e-bis co2 emission measurement standard, the co2 and car tax of new plug-in cars will increase. This combined with the removal of the “low emission” tax benefit makes the plug-in more expensive from 2026 onwards.

Example of diesel, plug-in hybrid and EV options in 2026:

Based on strong support for electric vehicles, company car drivers will increasingly choose electric cars in 2026.

How to calculate taxation value of company car:

Age group A (registration years 2024-2026)

• Unlimited benefit: The monthly tax value 1,5 % of the replacement price of the vehicle + 285 €
• Limited benefit: The monthly tax value 1,5 % of the replacement price of the vehicle + 105 €

Age group B (registration years 2021-2023)

• Unlimited benefit: The monthly tax value 1,2 % of the replacement price of the vehicle + 300 €
• Limited benefit: The monthly tax value 1,2 % of the replacement price of the vehicle + 120 €

Age group C (registration before 2021)

• Unlimited benefit: The monthly tax value 0,9 % of the replacement price of the vehicle + 315 €
• Limited benefit: The monthly tax value 0,9 % of the replacement price of the vehicle + 135 €

Replacement price is the general recommended retail price of the specific make and model. The amount is quoted at the date of purchase by the importer minus 3400 €. All extra accessories which exceed 1200 €, including additional home charger for PHEV or BEV, are included in the valuation. Home charger can be added as one of extra accessories starting from 2023. Winter tyres are excluded here as the winter tyres are mandatory in Finland.

Example of taxation value changes from age group A to age group B (2021-2023):

Car price 50 000 € - taxation value will decrease 125 €/month

The employer-provided charging electricity becomes a taxable benefit (limited car benefit drivers or other than employees with company cars)

Starting from the beginning of 2026, the employer-provided loadable e-money at the employee's workplace will be taxed as a taxable benefit in kind. The monetary value of the charging bonus for fully electric cars is 30 € and 20 € for plug-in hybrids.

There are no specific Mobility Legislation topics.

Below you will find a summary of all the changes. For further information and details, you can check the dedicated Arval Mobility Observatory France article on this topic.

TUV – Annual Taxes on Passenger Vehicles

After the removal of the exemption for hybrid vehicles last year, in 2026, the CO2 emissions tax will become even stricter. The threshold has been lowered by 5g/km.

CO2 Penalty – Malus CO2

The CO2 penalty scale is changing, with the trigger threshold set at 108 g/km as of January 1, 2026. The scale is progressive, with a ceiling of €80,000 for the most polluting vehicles (compared to €70,000 in 2025).

Weight Penalty

In 2026, the weight penalty continues to become stricter. The trigger threshold is lowered to 1.5 tons as of January 1 (compared to 1.6 tons in 2025). Companies still benefit from a weight reduction for passenger vehicles with at least 8 seats. To offset the lower threshold, this reduction increases from 500 to 600 kg.

Also noteworthy: not all electric cars will escape the penalty. Starting July 1, 2026, 100% electric models that have not obtained the eco-score will be subject to the weight penalty, with a reduction of 600 kg.

Fleet Greening Tax

Subject to the Incentive Annual Tax (IAT) for fleet greening since March 1, 2025, companies with fleets of more than 100 vehicles must declare the amount of their tax by January 25, 2026, if they have not met the target for integrating electric vehicles. Please note, the calculation is prorated to the effective date of the measure (i.e., 306 days for the year 2025).

Starting in 2026 (for a declaration in January 2027), the IAT will be calculated for the full year (365 days). Other major changes: the target percentage for integrating low-emission vehicles rises to 18% (from 15% in 2025), and the tax rate per missing vehicle doubles: €4,000 compared to €2,000 in 2025.

CEE – Ecological Bonus

In 2026, French companies will continue to benefit from incentives for purchasing electric vehicles through the CEE (Energy Savings Certificate) mechanism.

Note

The adoption of the 2026 Finance Bill is expected in the coming weeks. The text should bring further changes to automotive taxation for 2026, but only marginally. This article will be updated once the various fiscal and regulatory measures are definitively adopted

Tax Evolution for 2026 (Fleet):

Adjustment of Company Car Taxation

For fully electric vehicles, the assessment basis for company car taxation was already increased in 2025. The 0.25% rule of the gross list price now applies to vehicles with a list price of up to €100,000. This threshold will remain in effect in 2026.

Tightening of Incentives for Hybrid Vehicles

As of 1 January 2025, only plug-in hybrid vehicles (PHEVs) qualify for tax benefits if they either emit no more than 50 grams of CO₂ per kilometer or have a purely electric range of at least 80 kilometers. Vehicles that do not meet these criteria are taxed in the same way as conventional internal combustion vehicles, potentially leading to a higher tax burden for users.

Motor Vehicle Tax Exemption for Electric Vehicles

The existing exemption from motor vehicle tax for battery electric vehicles applies to vehicles first registered up to 31 December 2030. These vehicles are exempt from vehicle tax for up to ten years, but no later than 31 December 2035.

Government Subsidies

The German federal government has launched a new funding program supporting the purchase or leasing of fully electric vehicles (BEVs) and eligible plug-in hybrids (PHEVs), as well as range extenders.

The subsidy applies to new vehicle registrations from 1 January 2026 onwards.

BEVs are eligible for funding starting at €3,000. The amount is socially tiring based on household income and number of children. Lower-income households and families with children receive additional funding, up to a maximum of €6,000.

PHEVs and range extenders receive a base subsidy of €1,500, which can increase to up to €4,500 depending on income and family status.

Households with an annual gross income of up to €80,000 are eligible. For households with one or two children, the income threshold increases by €5,000 per child, up to a maximum of €90,000.

The subsidy applies equally to purchases and leasing arrangements.

The program is primarily aimed at private customers. For corporate fleets, the subsidy is generally not relevant, but it may gain importance if employees switch to electric vehicles for private use (e.g. as part of benefits or mobility budgets).

Home Charging / Workplace Electricity

•            From 2026, the rules for tax-free reimbursement of electricity costs incurred by employees when charging an electrified company car will change. The previous monthly flat-rate allowances expired on 31 December 2025 and are no longer applicable.

•            From 2026 onwards, only the actual electricity costs incurred, or a standardized electricity price allowance applied consistently for an entire year may be reimbursed tax-free.

Greenhouse Gas Reduction Quota (THG Quota)

The legally mandated greenhouse gas reduction quota will increase from 9.5% in 2024 to 10.5% in 2025 and to 11.3% in 2026. This requires mineral oil companies to further reduce their CO₂ emissions or purchase corresponding certificates.

Increase in CO₂ Pricing

From 2026, CO₂ pricing in Germany will be continued and restructured. After the CO₂ price increased from €45 to €55 per ton on 1 January 2025, a price corridor of €55–65 per ton of CO₂ will apply from 1 January 2026.

The exact price within this corridor will be determined through auctions under the national emissions trading system (BEHG). As a result, CO₂ costs may rise further compared to 2025.

A higher CO₂ price directly affects fuel prices and increases operating costs, particularly for vehicles with high CO₂ emissions. Depending on the CO₂ price achieved in 2026, petrol prices could rise by approximately a further three cents per liter, and diesel prices by slightly more than three cents per liter. This will further increase ongoing fuel and mobility costs for companies with combustion-engine fleets as well as for private individuals.

Tax evolution for 2026 (Mobility):

Commuting

From 1 January 2026, the commuter allowance (distance allowance) will be uniformly increased to €0.38 per kilometer from the first kilometer onward. Previously, the rate was €0.30 per kilometer for the first 20 kilometers and €0.38 per kilometer only from the 21st kilometer onwards.

Germany Ticket / Public Transport/ÖPNV

From 1 January 2026, the monthly price of the Germany-wide public transport ticket (Deutschlandticket) will be €63.

Government Subsidies

The German federal government has launched a new funding program supporting the purchase or leasing of fully electric vehicles (BEVs) and eligible plug-in hybrids (PHEVs), as well as range extenders.

The subsidy applies to new vehicle registrations from 1 January 2026 onwards.

BEVs are eligible for funding starting at €3,000. The amount is socially tiring based on household income and number of children. Lower-income households and families with children receive additional funding, up to a maximum of €6,000.

PHEVs and range extenders receive a base subsidy of €1,500, which can increase to up to €4,500 depending on income and family status.

Households with an annual gross income of up to €80,000 are eligible. For households with one or two children, the income threshold increases by €5,000 per child, up to a maximum of €90,000.

The subsidy applies equally to purchases and leasing arrangements.

The program is primarily aimed at private customers. For corporate fleets, the subsidy is generally not relevant, but it may gain importance if employees switch to electric vehicles for private use (e.g. as part of benefits or mobility budgets).

Tax Evolution for 2026 (Fleet):

Registration Tax

• Battery Electric Vehicles (BEVs) are exempt.
• Plug-in Hybrid Electric Vehicles (PHEVs) emitting ≤ 50 g CO₂/km receive a 75% reduction; those emitting ≥ 50 g CO₂/km as well as HEVs receive a 50% reduction.

Road Tax

• Full exemption for vehicles emitting ≤ 90 g CO₂/km (NEDC) or ≤ 122 g CO₂/km (WLTP).

Benefit in Kind – Company Cars

• BEVs and PHEVs (≤ 50 g CO₂/km) with a pre-tax price ≤ €40,000 are exempt.
• For vehicles priced above €40,000, the deductible ceiling is set at €40,000.
• Specific exemption for BEVs regarding presumed income tax.

Purchase Incentives

*Individuals (BEV)*

• Basic grant: €3,000 for a vehicle ≤ €50,000 excluding tax.
• Additional bonuses: €1,500 for scrapping a car over 10 years old, €1,000 for people with disabilities, €500 for those under 29, up to €2,000 for large families.

*Companies*

• Basic grant: €3,000 (vehicle ≤ €50,000 excluding tax).
• Additional grant of €1,000 for island-based companies.

Alternative Mobility and Infrastructure

• Subsidies ranging from €500 to €1,500 for electric bicycles, scooters, and minicars.
• €400 bonus for purchasing charging devices (subject to purchase of an EV).

Local Benefits

• Depending on the municipality: unrestricted city center access, free parking for BEVs.

Public Charging Network

• Approximately 9,000 charging stations available nationwide.

Tax evolution for 2026 (Fleet):

Government subsidies

The Italian government incentives for car purchases in 2025 and 2026 (by June 30, 2026) mainly focus on electric vehicles (EVs), with a maximum bonus of up to €11,000. About €600 million, largely from the National Recovery and Resilience Plan (PNRR), is allocated to support the purchase of electric cars, primarily for individuals and micro-enterprises located in urban areas with more than 50,000 inhabitants.

Buyers must scrap an older petrol or diesel vehicle registered up to Euro 5 standards, owned for at least six months. The incentive applies only to direct purchases (not leasing) of electric cars priced up to €35,000 (excluding VAT and optional extras) and cannot be combined with other national or EU incentives.

The bonus amount depends on the economic situation of the buyer, measured by the ISEE¹ index:

• • Up to €11,000 for individuals with ISEE¹ up to €30,000 (with scrapping)
  • Up to €9,000 for ISEE¹ between €30,000 and €40,000 (with scrapping)

Micro-enterprises have also access to incentives for eLCV (N1 and N2) with grants up to € 20,000/vehicle. These are non-repayable contributions covering up to 30% of the purchase price, with mandatory scrappage on ICE vehicles required.

Benefit in kind

Currently, there are no changes to the taxation of benefits in kind compared to the 2025 regulation. This means that for the calculation of the benefit in kind, the discriminating factor will no longer be the amount of polluting emissions from the vehicle, but the type of engine.

The percentages below will apply to the lump sum determined through the cost per kilometre based on ACI² data, with a conventional annual mileage of 15,000 km

Source: quattroruote.it

Regarding the benefit in kind thresholds, it is confirmed €1,000 for everyone, while it rises to €2,000 for employees with two or more dependent children. Benefits in kind increase also for new employees who agree to transfer their residence by more than 100 km.

EURO 6e-bis IMPACT & CHANGES

The Euro 6e-bis regulation introduces a stricter WLTP test for PHEVs, significantly raising official CO₂ emissions. While the impact on Italian taxation is absent—since benefit-in-kind (BIK) rates depend on powertrain type rather than CO₂—it still affects fleet choices, ESG metrics, and vehicle positioning

1) ISEE – It’s an official Italian indicator used to assess the overall economic condition of a household. It combines income, financial assets, real estate and household composition into a single standardized index.

2) ACI (Automobile Club d’Italia) – It’s Italy’s national automobile association and a public-interest institution with regulatory and administrative functions. It plays a central role in the management of vehicle-related matters, including the Public Vehicle Register (PRA), vehicle ownership records and certain taxes linked to car registration and transfers. ACI is also a key reference point for data, regulations and operational procedures related to vehicle circulation, ownership and taxation in Italy.   

Tax evolution for 2026 (Fleet):

Government subsidies linked to EVs (BEVS and PHEVS)

Financial assistance of €6,000 is available for:

• 100% electric vehicles, provided that their electrical energy consumption does not exceed 160 Wh/km (equivalent to 16 kWh/100 km),
• 100% electric vehicles with seven or more seats, subject to the applicant being part of a household of at least five individuals, thereby addressing the requirements of larger families,
• 100% electric utility vans and hydrogen fuel cell vehicles.

Additionally, a bonus of €3,000 is offered for 100% electric vehicles with electrical energy consumption between 161 Wh/km and 180 Wh/km. This threshold may be increased to 200 Wh/km, provided that the maximum net power of the vehicle's propulsion system does not exceed 150 kilowatts.

Electric vehicles whose electrical energy consumption exceeds 200 Wh/km (or 180 Wh/km if their power output exceeds 150 kilowatts) are not eligible for financial support under this scheme.

These measures apply to electric vehicles ordered until June 30, 2026, with the condition of a minimum retention period of 36 months.

Tax evolution for 2026 (Mobility):

Subsidies covering 50% of the VAT-exclusive cost (up to a maximum of 600 euros) for bicycles and electric-assisted cycles are available exclusively to individuals from households receiving either the cost-of-living allowance or the energy bonus at the time of purchase.

Additionally, financial assistance amounting to 50% of the VAT-exclusive cost of the vehicle, with a cap of 1,000 euros, is offered for cycles and pedal-assisted cycles designed to carry loads or passengers—either at the rear or front of the rider—in greater quantities than a standard bicycle (cargo bikes).

This aid scheme remains applicable to vehicles purchased up to 30 June 2026.

Continuation of financial aid for used electric vehicles

To further encourage the long-term retention of electric vehicles within the national fleet, a financial incentive of 1,500 euros is available for used cars that are at least three years old. Eligibility requires that the recipient retains ownership of the vehicle for a minimum of two additional years and does not reside in the same household as the vehicle's seller. This financial aid is offered until 30/06/2026.

Accounting for the QM ruling which changes the VAT taxable place of supply rules for company cars made available to employees

Making a company car available to an employee for private and professional use, in exchange for consideration and for a period of more than 30 days, constitutes (according to the Court of Justice of the European Union-CJEU), a long-term rental of a modes of transport subject to VAT in the employee's country of residence, and not in that of the employer. The application of a foreign VAT rate may result in a higher withholding on the salary, thereby reducing the employee's net salary.

Tax evolution for 2026 (Fleet):

BPM tax

BPM refers to the private motor vehicle and motorcycle tax applicable in the Netherlands. Individuals who import or purchase a car, motorcycle, or van are required to pay this tax (belastingen op personenauto's en motorrijwielen, bpm). The bpm amount is directly related to the CO2 emissions of the vehicle: higher emissions result in a higher tax. This calculation relies on specific tax bracket thresholds.

These thresholds will be reduced annually, and concurrently, the bpm tariffs—defined as the amounts charged per gram of CO2—will increase each year. Please note that different regulations apply to delivery vans.

For the years 2026, 2027, and 2028, the following adjustments have been determined:

• 2026: the tax bracket threshold will decrease by 1.55%, and tariffs will increase by 1.57%.
• 2027: the tax bracket threshold will decrease by 1.46%, and tariffs will increase by 1.48%.
• 2028: the tax bracket threshold will decrease by 1.38%, and tariffs will increase by 1.40%.

These modifications are being implemented because new vehicles are producing lower CO2 emissions each year, which results in an automatic reduction in bpm revenue. To sustain consistent tax income, the government is adjusting the bpm tariffs and the CO2 emission thresholds accordingly.

BIK tax

If private use of a company vehicle exceeds 500 km annually, 22% of the vehicle’s catalogue value will be included as part of the driver’s or user’s taxable income. A reduced car benefit charge of 18% applies to vehicles with zero CO₂ emissions, but this lower rate is applicable only to the first €30,000 of the catalogue price; for amounts above €30,000, the standard 22% rate is used.

This €30,000 threshold does not apply to hydrogen-powered vehicles. Where private use remains under 500 km per year, no car benefit is imposed. The applicable rate remains fixed for the duration of the standard lease period, commencing from the vehicle’s initial registration date. The Ministry of Finance has determined the standard lease period to be 60 months.

Untaxed allowances

The untaxed homework allowance is scheduled to be €2.45 by 2026.

Effective January 1, 2024, the tax-free mileage allowance for travel expenses has been increased from €0.21 to €0.23 per kilometer.

Tax evolution for 2026 (Fleet):

Changes in taxation and Benefit in Kind calculation - Effective Changes for Passenger Cars from 1 January 2026:

• The value added tax (VAT) subsidy threshold for electric vehicles will be reduced from NOK 500,000 to NOK 300,000.
• The base weight used in calculating the weight tax for all passenger cars, irrespective of technology, will be adjusted for inflation by 2.2 percent.
• The weight tax structure for passenger cars equipped with internal combustion engines will be simplified: no tax will apply to the first 1,200 kg (previously 500 kg), and a uniform rate of NOK 260 per kg will be levied for every kilogram exceeding 1,200 kg (previously, several ranges with varying rates applied).
• The CO2 tax for passenger cars with internal combustion engines will also be streamlined. Deduction for CO2 emissions below 60 km/kg will be removed; hereafter, a tax will be imposed on each gram of CO2 emitted. These changes will result in an overall increase in carbon dioxide tax for all internal combustion engine passenger cars.
• The NOx tax component will be abolished, as new internal combustion engine models exhibit very low NOx emissions, rendering this tax insignificant within the total one-off registration fee.

Regulatory Changes for Light Commercial Vehicles (LCVs) from 1 January 2026:

• Taxation of vans will be further clarified and distinctly separated from passenger car taxation.
• The van weight tax, previously set at 20 percent of the passenger car rate, will adopt its own specific rate and range. Weight up to 1,200 kg will be exempt from tax, while each kilogram above 1,200 kg will incur a charge of NOK 30 per kg.
• The CO2 tax framework for vans will be reduced from four intervals to three, concurrently with an increase in applicable rates. This adjustment will lead to higher CO2 taxes for LCVs with internal combustion engines from next year.

Calculation of BIK Subject to Withholding Tax for Private Use of Company Cars:

• Benefits in Kind (BIK) subject to withholding tax are calculated at 30 percent of the vehicle's list price as new up to NOK 370,300, and 20 percent for any part of the list price exceeding this amount (the corresponding threshold was NOK 362,300 in 2025).

Tax evolution for 2026 (Fleet):

BEV purchase incentives “NaszEauto”

The "NaszEauto" program is scheduled to conclude in the second quarter of 2026, tentatively by April 30th. The initiative is accessible to private individuals, public institutions, non-governmental organizations, and national parks.

Apart from passenger vehicles, the program also extends support to cargo vehicles—commonly referred to as delivery vehicles—with a maximum permissible total weight of 3.5 tonnes, as well as small buses used for passenger transport not exceeding a 5-tonne total weight.

Subsidies are available for the purchase, leasing, or long-term rental of passenger cars. The maximum eligible vehicle purchase price for support is PLN 225,000 net (excluding VAT) for category M1 vehicles. Grants may reach up to PLN 40,000 for private individuals, sole proprietors (JDG), and national parks. For category M2 vehicles, the maximum grant is PLN 600,000, while for N1 vehicles—eLCVs, available only to public institutions, NGOs, and national parks—it is capped at PLN 70,000.

Non-financial BEV incentives – Complimentary Bus Lane Access and Public Parking

Originally set to expire at the end of 2025, benefits such as free parking in paid zones and access to bus lanes have been extended until the end of 2027.

Amended Car Depreciation Limits and Tax-Deductible Expenses for Passenger Vehicles

Effective January 1st, 2026, depreciation and tax-deductible expense limits for passenger cars will be based on carbon dioxide (CO₂) emissions rather than drive type. These amendments align tax regulations with updates introduced in the 2021 revision of the Act on Electromobility and Alternative Fuels, among other measures.

The emission thresholds and corresponding limits are as follows:

• Electric or hydrogen-powered vehicles: PLN 225,000 limit;
• Vehicles emitting less than 50 g/km CO₂ (e.g., certain plug-in hybrids): PLN 150,000 limit;
• Vehicles emitting more than 50 g/km CO₂ (including ICE and hybrid cars): PLN 100,000 limit (previously PLN 150,000).

For depreciation purposes, taxpayers may apply current, higher limits only if the vehicle is registered as a fixed asset by the end of 2025. This provision excludes leasing and rental agreements: regardless of contract conclusion date, lower limits will apply beginning in 2026.

Who is impacted by the revised cost limits for car leasing, rental, or depreciation?

The new regulations affect taxpayers who depreciate fixed assets in the form of vehicles, as well as those using cars under lease, rental, or similar contractual arrangements.

Tax evolution for 2026 (Mobility):

At present, there is NO governmental legislation in Poland on sustainable mobility or mobility for employees.

Tax evolution for 2026 (Fleet):

The State Budget Law for 2026 introduced a significant change in the Autonomous Taxation of plug-in hybrid passenger vehicles, which may only be subject to the reduced Autonomus Tax rates of 2.5%, 7.5%, and 15% if they meet these two requirements:

1. Vehicles with official emissions below 50 gCO2/km, or below 80 gCO2/km when approved according to the “Euro 6e-bis” emissions standard, pursuant to Regulation (EU) 2023/443,

2. Having a minimum electric-only range/autonomy of 50 km.

Autonomous taxation (AT) applies to certain expenses incurred by corporate income tax payers, such as undocumented expenses, representation expenses, vehicle-related expenses, expenses related to per diems, among others.

In the case of expenses with passenger cars, they are subject to autonomous taxation, namely, depreciation, rents or leases, insurance, maintenance and repairs, fuel, and taxes on their ownership or use.

As expenses, these items are taxed regardless of the calculation of taxable profit or loss. However, the 10-percentage point increase in motor vehicle TA rates applicable to companies with a tax loss was suspended in 2024 and remains without effect for 2026, for companies that have made a taxable profit in at least one of the previous three fiscal years and have fulfilled their tax obligations.

In the table below, we identify the TA rates that should be considered based on the type of vehicle and the respective purchase value of the vehicles.

We underline that the application of the TA rate on Plug-in Hybrid vehicles should consider the information on CO2 emissions provided at the time of their purchase.

For example:

A company vehicle costing €30,000 with emissions of 70 gCO2/km that is not certified under the Euro 6e-bis standard will have to consider the rates on the left side of the table (8%), whereas a new vehicle from the same company with the same purchase price and emissions, but with Euro 6e-bis certification, will have a rate of 2.5% (right side of the table).

* The value of the acquisition cost includes VAT if the VAT incurred for the purchase of the vehicle is non-deductible and is therefore included in the cost to the company.

Tax evolution for 2026 (Fleet):

The incentives provided under this year's program amounted to 18,500 LEI for a new fully electric vehicle and 15,000 LEI for a new plug-in hybrid vehicle.

Currently, there is no official confirmation regarding the continuation of the program in 2026; further information will be available pending confirmation from the relevant authorities regarding budget allocation for that year.

No significant impacts have been identified as a result of new regulations.

Tax evolution for 2026 (Fleet):

Government subsidies linked to EVs (BEVs and PHEVs)

AUTO 2030 Plan (pending confirmation for renting as of 30 December 2025) aimed at direct financial aid for electric vehicles. As of December 2026, there is uncertainty about the inclusion of renting and companies in this direct aid.

In parallel, the launch of the MOVES Flotas Plus (specifically targeted for company fleets, with €250 million in financial aid), with a limited application window: 23 December 2025 until 10 February 2026.

Any other legislation changes that can impact fleets, companies having fleets, fleet management

Low Emission Zones (ZBEs) – operational restrictions in cities with more than 50.000 inhabitants intensify from 2026. Enforcement becomes more impactful from 1 January 2026 (end of the main transition period), increasing operational risk for fleets with recurring urban activity.

Specific support on EV charging points if any for companies and employees

The program MOVES Flotas Plus is also valid for charging points. Apart from that, MOVES Corredores de Recarga, will initially allocate €200 million from the RTRP to projects for publicly accessible charging points along the main Spanish road networks to guarantee full cross-border connectivity in the European Union. At least another €100 million from ERDF funds will soon be added to this endowment. It is estimated that this call will encourage the creation of some 200 charging stations, with minimum available powers of between 300 and 400 kW per station, which will mean around 1,800 additional charging points, with at least one 150 kW point per location.

Tax evolution for 2026 (Mobility):

Mobility for employees

Employee mobility is no longer “soft policy”: commuting patterns, incentives, infrastructure and governance are being pulled into corporate obligations via workplace mobility planning requirements. Spain’s Sustainable Mobility Law (Law 9/2025) sets obligations for Sustainable Mobility to Work Plans for qualifying workplaces, with a maximum implementation period of 24 months.

• Applies to workplaces with more than 200 employees (or more than 100 per shift) and to public entities, with implementation within 24 months.
 • These plans are expected to include mobility solutions such as collective and shared or low-emission transport.

Specific legislation promoting sustainable mobility

These are incorporated into the Sustainable Mobility Law

Imposition for companies to offer mobility solutions/budgets

These are incorporated into the Sustainable Mobility Law

Tax evolution for 2026 (Fleet):

Government subsidies associated with electric vehicles (BEVs and PHEVs)

The subsidy of 40,000 SEK for electric light commercial vehicles (e-LCVs) will conclude in February 2026.

Changes in taxation and Benefit in Kind calculation

There will be a minor increase in the general BIK (Benefit-in-Kind) calculation, applicable to all energy types, resulting from the following adjustments:

• Prisbasbelopp will rise from SEK 58,800 to SEK 59,200.
• Stadslåneräntan will increase from 1.96% to 2.55%.

Impact on BIK Calculation: 2026 vs. 2025

• 2025: Vehicle price SEK 649,900 – BIK = SEK 5,613/month
• 2026: Vehicle price SEK 649,900 – BIK = SEK 5,735/month

This represents a BIK cost increase of SEK 122 per month.

For PHEVs, the introduction of Euro 6e-bis standards will lead to higher road tax (based on CO2 emissions) for numerous plug-in hybrid models. As road tax is included in the BIK calculation, this will result in increased BIK costs for affected vehicles.

Changes in legislation affecting fleets, companies operating fleets, and fleet management

At the beginning of the year, the new EU emission standard, Euro 6e-bis, will take effect. This regulation will impact WLTP CO2 values for plug-in hybrid vehicles (PHEVs), which is expected to lead to an increase in road tax.

Support for EV charging points for companies and employees

Employees: There are no changes. The government subsidy remains at 50% of the total cost (installation plus hardware), with a maximum amount of SEK 15,000.

Companies:

Starting in 2026, the support for companies will no longer be limited by the number of chargers installed. The subsidy structure is as follows:

• Small businesses: 50% of eligible costs, up to a maximum of SEK 15,000 per charging point.
• Medium-sized companies: 40% of eligible costs, up to a maximum of SEK 15,000 per charging point.
• Large companies: 20% of eligible costs, up to a maximum of SEK 15,000 per charging point.

Tax Evolution 2026 (Fleet):

Currently, Switzerland is not experiencing significant effects from new regulations or taxes.

A proposed change for 2030, currently under review, involves a potential tax on battery electric vehicles (BEVs).

The intention is for all vehicles to make a financial contribution toward maintaining transport infrastructure. At present, revenues from mineral oil taxes are collected automatically at refueling stations. In future, owners of electric vehicles will be expected to contribute in a comparable manner.

As electric vehicle adoption increases, income from mineral oil taxes is anticipated to decline. This reduction in revenue is to be offset by introducing a corresponding tax for electric vehicles. Two alternatives are being considered: a levy based on driving distance (kilometers driven) or taxation applied to the charging process.

Tax Evolution 2026 (Fleet):

Zero Emission Vehicle (ZEV) Mandate

The third full year of the ZEV mandate continues in 2026, OEMs face 33% zero-emission vehicle (battery/fuel cell electric) targets for new cars, and 24 % for LCVs with per-vehicle penalties for non-compliance.

In 2025 the UK Government confirmed that by 2030 no new ICE cars will be produced although there were exemptions for smaller OEM’s, excluded vans, reduced the penalties for non-compliance and gave more flexibility around credits. At the end of 2025, the UK government also announced a consultation with the industry about the transition to EV.

Vehicle Excise Duty

In 2025 Vehicle Excise Duty (VED) changes will apply to all cars registered since April 2017, equalising annual VED renewals at £195, the threshold for the £425 Expensive Car Supplement for any new registrations currently priced at => £40,000 rises to £50,000 from April.

Fuel Duty – A proportion of every litre of petrol and diesel is apportioned to tax, In 2025, the government announced that the rate of duty which had been fixed for years, would be unfrozen in September. HMRC (His Majesty’s Revenue & Customs) also announced the intention to implement a new tax on the amount of miles driven by EV’s and PHEV’s (3p and 1.5p/mile respectively from 2028). A consultation will be undertaken on how this will work in practice.

Company Car Tax

Company car tax is a charge on the employee, calculated as income tax on the annual BiK (Benefit-in-kind) value, and a charge on the employer, paid as Class 1A NIC (national insurance contribution) on that same value. For 2025/26 the figures are as follows.

Employee income tax: Taxed at 20%, 40% or 45% on the BiK value, depending on the employee’s marginal rate.

Employer NIC: 15% of the BiK value.

BiK value: List price of the car (including accessories) × the relevant BiK percentage. HMRC publishes the official list price and percentages and currently the table lists out the values to 2030.

External Link - Company Car Tax Rates

Salary Sacrifice

As an incentive for employees of companies to adopt EV’s, the government permits the costs of a company vehicle under 75 co2 to be deducted from gross salary. The tax savings of a zero/ low emission vehicle, which usually more than offset the payment of Company Car Tax mean it is an attractive benefit for employees. The company also saves tax on salary, which can make the scheme more attractive or cover the costs of the administration.

Electric Vehicle and Chargepoint subsidies

The government has launched significant new electric car grants offering up to £3,750 off eligible electric vehicles under £37,000. This scheme runs until 2028

The grants operate through a two-tier system based on manufacturer sustainability standards:

•            Band One: £3,750 for the most sustainably produced cars

•            Band Two: £1,500 for other qualifying electric vehicles

Discounts are applied automatically at point of sale when purchasing eligible vehicles

The Electric Vehicle Chargepoint Grant - available until the 31st March 2026 - encompasses business and home charging points and was designed to encourage more people, especially those who rent, to transition to an electric car. This includes:

• Residential Landlords: Grants of up to £350 per socket for existing property that the application owns or manages but does not live in. This can include housing estates, apartments, private social housing or public sector organisations.
• Residential Carparks: Grants of up to £30,000 off the cost of the infrastructure needed to install charge points in residential carparks.
• Flat Owners & People Living in Rented Properties: Grants of up to £350 for EV drivers who live in a flat or rent any residential property.

Fuel Reimbursement

HMRC permit reimbursement of business mileage on an actual cost basis (which needs to be clearly auditable) and on a set mileage rate depending on the fuel type. These rates are amended and published quarterly by HMRC. In 2025 a differentiated rate was announced for EV’s depending on whether the charging takes place at home or on the road.

London Congestion Charge

The 100% Cleaner Vehicle Discount will be discontinued from 2025, and BEVs will be charged to enter the zone in 2026. There remains a discount for EV’s of 25% (and eLCV’s of 50%), who use the designated payment app.

Tax Evolution 2026 (Mobility):

The Cycle to Work scheme remained unchanged in the 2025 UK Budget, continuing to support affordable and sustainable commuting options for employees. The cost of the bike for employees is deducted via Salary Sacrifice (typically by specialist benefit providers). The employee then hires the bike from the company typically over 12-18 months before keeping or returning it.