Definition of a low-emission vehicle for tax purposes
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Definition of a low-emission vehicle
From 1 July 2022, the value of non-monetary income for employees who use low-emission company cars has been reduced from 1% to 0.5% of the vehicle's purchase price. In addition, a special rate of 0.25% for electric cars was introduced on 1 January 2024. The change has brought savings in insurance premiums and taxes, while also promoting the use of more environmentally friendly vehicles with the aim of reducing greenhouse gas emissions.
Definition of a low-emission vehicle valid until 31 December 2025 (according to Act No. 360/2022 Coll. on the promotion of low-emission vehicles through public procurement and public services in passenger transport):
A low-emission vehicle is a car in category M1, M2 or N1 whose CO2 emissions do not exceed 50 g/km and whose harmful substances do not exceed 80% of the permitted limits in real traffic. This includes electric cars and plug-in hybrids.
From 1 January 2026, the new definition of a low-emission vehicle is set out in the Income Tax Act, which retains the original CO2 emission limit of 50 g/km.
Definition of a low-emission vehicle from 1 January 2026 according to Section 21b(6) of Act No. 586/1992 Coll. on income tax:
For income tax purposes, a low-emission vehicle is defined as a road motor vehicle of category M1, M2 or N1 that does not exceed the CO2 emission limit of 50 g/km and is not a zero-emission vehicle.
Author: Martina Farářová
Revision: Martina Farářová
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