Payroll news: benefits in kind for combustion-engine and electric vehicles

6 March 2025

The decree of 25 February 2025, published in the Official Journal, introduces significant changes to the valuation of benefits in kind relating to employer-provided vehicles.

For conventional vehicles, a distinction must now be made between those provided before and after 1 February 2025. Valuation rates for new vehicles will increase to 15% of the purchase cost for new vehicles, and special rules will apply to fuel.

For electric vehicles, the reduction in the cost of use is increased, with a 70% deduction up to €4,582 per year for vehicles made available after 1 February 2025. For charging stations, existing exemptions will be extended until 2027, providing tax benefits based on the installation and use of these stations.

These provisions are subject to clarification by the competent authorities.