Tax advantages for low-emission vehicles

The above-mentioned new government bill amending the Income Tax Act proposes support for owners of low-emission vehicles. The bill suggests reducing the amount of taxable income, which increases the tax base of employees who use company cars for private trips. The increase in the tax base regarding low-emission vehicles will be reduced to 0.5 per cent of the purchase price of the vehicle (compared to the current 1 per cent). "Low-emission vehicles" are those road vehicles in categories M1, M2 or N1 whose CO2 emission limits fall below 50 grams per kilometre and below 80 per cent of the emission limits in respect of air-polluting substances when in operation, as defined by the respective EU directive. The new wording of this bill should be applied for the taxable period of 2022, irrespective of the date when the vehicle in question was acquired. Taxation respect of those months when the low-emission vehicle was also used for private trips but when the amended bill has not yet taken effect will be reflected in the annual settlement of deposits.

The bill also shortens the period regarding the tax depreciation of equipment that is used solely for charging electric-powered vehicles or hybrid vehicles (i.e. charging stations and wall boxes) from ten to five years on the basis of transferring such equipment from the third to the second depreciation group. Tax payers who acquired their charging stations before the bill becomes effective, have the chance to transfer their equipment to the second depreciation group in the 2022 tax period or to directly record it in the second group if they start the depreciation during 2022.