Fringe Benefit 2025: tax savings with electric cars and plug-in hybrids
As of Jan. 1, 2025, new tax rules went into effect in Italy that radically change the taxation of company cars, acting on the 2025 fringe benefit rates. The Budget Law 2025 aims to incentivize the adoption of electric vehicles and plug-in hybrids, while penalizing internal combustion cars such as gasoline or diesel cars.
Let's find out together the main changes, how to take advantage of them to save money, and why choosing environmentally friendly vehicles is a strategic decision for companies.
Fringe benefit taxation: what changes from 2025
New tax rates applied to company car-related fringe benefits reward more sustainable vehicles, making it more costly to choose traditional vehicles. Here are the details:
- Battery electric vehicles (BEVs): taxation reduced to 10%, making these vehicles extremely affordable.
- Plug-in hybrids (PHEVs): taxation set at 20 percent, still advantageous compared to conventional cars.
- Gasoline or diesel cars: taxation increased to 50 percent, a significant increase from the past.
Practical example of savings
Consider a company vehicle with an annual fringe benefit of €3,000 on a conventional mileage of 15,000 km:
- Gasoline or diesel cars: taxable amount of €1,500, an increase from the past.
- Electric vehicle: taxable amount reduced to only €300.
- Plug-in hybrid vehicle: taxable amount of €600.
This example shows how the new rates can translate into significant savings for both companies and employees.
Why companies should switch to electric
Adopting an electric or hybrid fleet is not just a fiscal issue, but a strategic choice with multiple benefits:
- Financial savings: due to the reduced taxation at 10 percent, electric cars can easily fall under the exemption thresholds of fringe benefits (€1,000 or €2,000 for employees with tax dependent children).
- Environmental benefits: an electric fleet reduces CO2 emissions, improving corporate image and contributing to sustainability goals.
- Operational efficiency: electric vehicles require less maintenance and allow the cost of electric recharging to be deducted, ensuring a long-term investment.
How to avoid tax increases on company cars
If your company still uses gasoline or diesel vehicles, acting now is critical. For contracts signed by Dec. 31, 2024, the old tax rates will remain in place, even with vehicle delivery in 2025.
From 2025, choosing an electric or plug-in hybrid vehicle is the best solution for:
- Avoiding tax increases.
- Accessing tax benefits.
- Contributing to sustainable mobility.
How Powy can support you in the transition
Coping with this change is easier with the right partner. We at Powy are by your side to help you turn this transition into an opportunity.
Our services:
- Customized solutions: we provide and manage charging stations comprehensively, adapting to your business needs.
- Financial flexibility: we offer leasing options, purchase or solutions without initial investment.
- 100% renewable energy: the energy from our charging stations is completely sustainable.
- Ongoing consulting: our experts will guide you in choosing the best solution, simplifying operational and bureaucratic aspects.
Choose the future with Powy
The new tax rules present a unique opportunity to accelerate the shift toward greener mobility. Adopting electric or plug-in hybrid solutions is both an economically and environmentally beneficial choice.
With Powy by your side, you can tackle change easily and stress-free. Contact us today and find out how to make your corporate fleet more sustainable and affordable.
About Powy
Powy is a company that owns, develops and operates Italy's leading independent network of public charging infrastructure for electric vehicles, with a growing presence in Spain as well.
Founded in Turin, Italy in 2018, Powy is at the center of the transition to more sustainable mobility, offering an innovative charging infrastructure that uses only 100 percent renewable energy.
Powy 's network includes quick, fast, and ultra-fast charging solutions strategically placed in public and private parking lots, supermarkets, shopping malls, and transportation hubs to ensure maximum convenience and accessibility for EV drivers. Each station is equipped with advanced technologies to provide a reliable and efficient charging experience.
Learn more: wpowy.energy