No longer is electromobility just an environmental topic, it has also become a tax issue. The gradual tightening of emission rules in the EU has been also reflected in Czech tax legislation. What are the key impacts on entrepreneurs?

The Income Tax Act distinguishes between zero-emission and low-emission vehicles, with zero-emission vehicles (e.g. exclusively electric-driven vehicles) receiving more significant support – lower taxation of non-cash income of employees when using a company car for private use (0.25% of the entry price per month), the possibility of extraordinary depreciation of up to 100% of the entry price within 24 months (Section 30a of the Income Tax Act); at the same time, they are not subject to road tax.

From the point of view of tax deductibility, the proper procedure for accounting of the costs of electricity consumption is also essential. If there is no document showing the actual price, the average (reference) price of electricity set by the Ordinance on travel allowances can be used.

In practice, it is important to note that there are frequent differences between the consumption declared by the manufacturer and the actual electricity consumption during standard vehicle operation. Therefore, we recommend using smart applications that record accurate charging values and allow you to prove the actual electricity consumed without significant distortion.