Amendments to the Electric Vehicles Deduction Rules
A LN was published to amend the Electric Vehicles Deduction Rules, applicable vis-à-vis expenditure incurred with effect from 01/01/2016 on electric vehicles.
The tax deduction is calculated at the rate of 150% of the cost incurred in the case of an electric vehicle or 125% of the cost incurred in the case of a hybrid vehicle. “Electric vehicle” is defined as a vehicle that derives its motive power exclusively from an electric motor, whilst "hybrid vehicle" is defined as a vehicle having at least two different energy converters and two different energy storage systems for the purpose of vehicle propulsion.
The total deduction claimed under these rules shall not exceed €40,000 in the case of an electric vehicle and € 30,000 in the case of a hybrid vehicle.
How Mazars can help
Our team of highly trained professionals can provide you with more information about your company’s eligibility for such tax deduction and also assist you to make use of this deduction.
Contact us if you need further help or information.