For employees who have it, the company’s car is a significant advantage. Borrowed by the company that uses them, the employee can use the vehicle for personal trips. It constitutes as such an element of remuneration or non -monetary advantage in kind, and will be subject to both social contributions and income tax. In general, the calculation is done flat instead of real costs.
A new decree published this Thursday, February 27 in the official magazine revives the calculation bases to increase the cost of using a thermal car.
Fiscal and social increases for employees, as well as for companies.
To date, the calculation of the advantage in kind in case of rent is 30 or 40% of the general annual cost (rental, maintenance, insurance) or from 6 to 9% for a purchased vehicle. In both cases, the amount of the advantage in kind is added to the Gross Employee salary. “An increase in calculation bases inflates the annual gross salary and, therefore, the employee’s social positions,” says Yoann Magout for Mobileo Consulting, a specialist in commercial fleets.
The new fiscal framework establishes the calculation of the advantage in kind of 30 to 50% for lease vehicles (up to 67% if the fuel costs are covered) and from 9% to 15% (with fuel management) of the cost of purchase of the car if the vehicle belongs to the company. For example, for a Peugeot 3008, the cost of the employee must go from 159 euros per month to 266, an increase of 107 euros. An increase in nuanced according to Yohann Magaut: “For employees, even if the calculation base increases, this remains very advantageous compared to the purchase of an individual vehicle.”
Tax modification mainly increases increases in employer’s contributions. The increase ranges from 145 to 241 euros, in the same reference model Peugeot 3008. “For companies, this is a new blow. This adds to the annual incentive tax for the acquisition of light vehicles, that is a lot.
Electric vehicles saved
Promote electricity in the business fleet will be obvious. In fact, the expected increase in taxes is accompanied by a significant reduction of 70% if the available vehicle is electric and according to the ecological score. You must see the desire to ecologize business fleets, while electric vehicles currently represent 15 to 16% of records according to mobileo data.
Keep in mind that the reform refers to the function vehicles acquired or rented since February 1, 2025. Mobilianos, federation of car services, deplore said retroactivity in a press release that believes that “the date of implementation of the new rules must have taken place as soon as possible on the publication date of the new text with a discrepancy of the order of three months to take into account the delivery time.”
This reform only refers to the new holders of a company’s car, people who already have a company’s car are saved. It is estimated that 1.2 million function vehicles are currently in circulation.
Source: BFM TV
