Serious changes in the company car market – this is how businesses can prepare
According to the bill submitted on October 29, 2024 and already adopted by the government on November 25, the tax burden on company cars will increase significantly in the next two years. These changes represent serious challenges, but at the same time they also represent opportunities that can still be exploited for businesses. László Jakus, CFO of Ayvens, Hungary’s leading mobility service provider, summarizes the most important information in 3 points.
1. The company car tax rate will increase from January 2025, depending on the performance of the vehicles, but by an average of 20%, while inflation-related adjustments will be made to the registration and vehicle tax amounts, the amount of which will be published by December 15, 2024 and the change will also come into effect on January 1, 2025.
“Planning for the additional costs arising from tax increases is essential, and businesses should consider diversifying their fleets to optimize expenses by including more cost-effective or sustainable, lower-emission models,”
suggests the CFO of Ayvens.
2. Plug-in hybrids will gain additional benefits after the withdrawal of the green license plate.
“Companies with company fleets can still take advantage of the current tax exemption for plug-in hybrid vehicles – but they need to act in time, because from 2026 they will also lose their company car tax exemption,”
– points out László Jakus.
3. In addition to the increases and withdrawals, positive news is that the possibility for businesses to reclaim 50% of the VAT on monthly operational leasing fees for company cars without keeping detailed road records has been extended for another 3 years.
“The possibility of reclaiming VAT is one of the most significant financial advantages of operating leasing, so businesses can continue to build on this cost-cutting and administration-easing benefit in the future,”
the CFO highlights.
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