The tax on company vehicles is payable by all companies that use passenger cars or multipurpose vehicles.
The calculation of the tax on company vehicles is carried out by calendar year. It must be declared and paid in January of the year following the year of taxation. In January 2019, companies must therefore make their declaration of tax on company cars for vehicles they prepared for the period from 1st January 2018 to 31 December 2020.
Companies liable to tax on company vehicles
All companies are subject to corporate vehicle tax, regardless of their legal form and tax regime.
On the other hand, associations under the 1901 law, GAEC and individual companies are not subject to tax on company vehicles.
Remember: You therefore come within the scope of the tax if you carry out your activity as a company (joint stock companies, SARL and EURL, professional civil companies, etc.).
Vehicles subject to company vehicle tax
The vehicles subject to the company vehicle tax are those which are owned or used by the company and which are classified:
- in the category of passenger cars,
- Or in the category of multipurpose vehicles ( N1 ) intended for the transport of passengers and their luggage or their goods.
The tax applies to vehicles:
- Owned by the company
- Leased by the company. In this case, the tax is charged to the tenant. However, rentals for a period not exceeding one calendar month or 30 consecutive days are not subject to tax
- Made available to society. For example, a private car owned or leased by the manager or an employee, and used by the company against reimbursement of mileage costs, must be declared. In the absence of reimbursement of mileage costs, the vehicle escapes the tax
The law provides for several cases of exemption, in particular for vehicles assigned to the exercise of certain activities (taxis, VTC, short-term rental, etc.) and for clean vehicles. These exemptions are described to you here: Exempt vehicles.
Remember: your company is subject to company vehicle tax when you use passenger cars or certain N1 vehicles to carry on your business.
Calculation of the tax on company vehicles
The tax on company cars is calculated per calendar quarter for each tax period from 1st January to 31 December of each year. The use of the tax return estimator is important now.
Vehicles subject to tax
The calculation is carried out vehicle by vehicle. For each calendar quarter, the tax is calculated based on:
- The number of vehicles owned or used on the first day of the quarter.
- The number of vehicles leased by the company for more than 30 days during the quarter.
- In addition, a vehicle rented for a maximum of three consecutive months should only be taken into account for a single quarter when the rental period is spread over two quarterly calculation periods.
Calculation of the gross amount of tax on company vehicles
The tax on company vehicles is equal to the sum of two components. These components are as follows:
- The first component is based on the CO2 emission rate or fiscal power
- The second component is based on the age of the vehicle and its type of fuel
The calculation of the first component
The first component is based on the vehicle’s CO2 emission rate, or, for older vehicles, on their fiscal power.