Electric car company car tax – what every company needs to know
Did you know that for a fully electric company car, you currently pay 0 HUF in company car tax? This in itself represents a significant saving, but it is by no means the only financial benefit that electric mobility offers to businesses. In terms of company car tax, electric cars are attracting the attention of more and more businesses – as much for environmental as for financial considerations.
On Voltie's blog, we regularly explore questions related to electric driving. In this article, we look at how tax conditions shape up if you were to build your company fleet from electric vehicles, and what laws, discounts, and considerations might influence your decision.
Using a company car can entail several types of tax obligations. Basically, you should keep the following areas in mind – and see how electric drive affects them.
Motor vehicle tax is governed by Act LXXXII of 1991. This tax basically depends on the vehicle's powertrain and environmental classification. In the case of electric cars, this is currently 0 forints – which in itself is a remarkable advantage over vehicles with traditional drivetrains.
If you use an electric car as a company or as an employee, it is worth being aware of the details of the regulations. One such issue is the question of billing, which is not as straightforward as in the case of traditionally powered cars – especially if the vehicle is used for mixed, i.e., both private and business purposes. You can read about this in more detail in our blog post on charging reimbursement.
Government regulation is continuously matching market developments and points in a clear direction: it aims to encourage a complete transition to electric vehicles. For plug-in hybrids, the previous exemption is being phased out, so higher tax rates must be expected for these henceforth. Purely electric cars, however, continue to receive more favorable treatment – with respect to all three types of taxes examined. It is therefore worth staying up-to-date so you can react to the changes in a timely manner.
If you are considering a company car fleet, it is worth knowing that electric cars are in an outstandingly favorable position from a tax perspective. In summary:
● Company car tax: 0 HUF – as opposed to the monthly tax rate payable for petrol or diesel cars
● Motor vehicle tax: 0 HUF – for traditional cars, this value can be up to tens of thousands of forints per year
● Registration tax: 0 HUF – exclusively for fully electric (5E) and zero-emission (5Z) cars
● Property acquisition duty: also zero – for zero-emission vehicles
If you are considering electric vehicles at a corporate level, it is worth being forward-thinking and taking into account the total cost of ownership (TCO) beyond the initial price. Due to the tax exemption, other discounts, and the difference between charging and refueling, maintaining an electric car will become cheaper over time than a diesel or petrol one.
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