Restrictions on cars
From 2025, a CO2-related limitation on the deductibility of the purchase and rental costs of cars will apply.
Once the restrictions are in place, only certain CO2-related costs of the car will be recognised.
The following restrictions apply: for M1 cars*
*Class M1 – a vehicle for the carriage of passengers having not more than 8 passenger seats and 1 driver’s seat (passenger car)
Restrictions apply to both buying and renting cars.
From 2025, the restrictions apply to the calculation and declaration of corporation tax, including for companies whose tax period does not coincide with the calendar year.
Companies should determine their CO2 emissions from the extract from the Road Vehicle Register or from information contained in such a register. No extracts are yet issued by VĮ Regitra.
If the car is rented through electronic platforms like Bolt or Citybee, the restrictions will not apply. Leaseback does not count as an acquisition, and the restrictions will only apply to lease contracts concluded from 2025.
