Joke Persoons

The impact of ESG on the taxation of your corporate fleet

Thanks to the growing awareness around ESG (Environmental, Social and Governance), the decision-making process of companies is increasingly influenced by matters like energy consumption, climate, health, safety and good corporate governance. ESG seeks for an equilibrium between financial economic results, transparency, social interests and the environment without losing the balance between them. It should therefore be no surprise that also the tax authorities are stimulating tax payers (more specifically companies) to greening their company car fleet by allowing a higher tax deduction for so-called ‘green cars’ and disallowing the deduction of ‘fuel cars’ going further. Next to the tax impact, the greenification of the company car fleet offers opportunities to create added value for companies, climate and their people from an innovation perspective.