Charging a company EV at home? It may qualify as a business expense

A company that reimburses an employee for electricity used to charge a company electric vehicle at a home charging station can include that reimbursement as a deductible business cost. This has been confirmed in the tax ruling issued by the Director of the National Tax Information Office on April 24, 2025 (0114-KDIP2-2.4010.100.2025.2.ASK).

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🚗 What was the company’s plan?

The employee was provided with an electric company car for business purposes (with limited private use allowed). The agreement and car use policy clearly stated that the vehicle was primarily for work-related duties. The company operates in the field of vessel repair and maintenance, where employee mobility and availability are essential.

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⚡ How is the electricity settled?

The home charging point is dedicated exclusively to the company vehicle and includes:

• a separate electricity meter,

• an AC charger with online access and energy tracking,

• integration with a charging card assigned to the specific company car.

The employee pays the electricity bill, prepares a usage summary in line with the agreement, and submits a request for reimbursement. The company covers the cost, recognizing it as directly related to its business operations.

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📊 Tax treatment

Since the vehicle is used partly for personal purposes and no mileage log is kept, the company may include 75% of the electricity costs as tax-deductible, as per regulations.

The interpretation confirms: if the expense is reasonable, business-related, and potentially contributes to revenue – it can be included in the company’s deductible costs.