The reform of Benefits in Kind (BIC) for company cars came into force retroactively on February 1, 2025. This reform brings significant changes to the rates and provisions applicable to company cars. Here’s a summary of what you need to know!

In the following, when we talk about the rate of benefits in kind, this corresponds to the percentage of the vehicle’s cost to the company that will be added to the employee’s payslip and subject to taxes and social security contributions.

 

New Rates and Terms 🆕

There are two main types of benefit-in-kind rate: flat-rate or actual-value. The flat rate corresponds to a fixed percentage based on the cost of the vehicle, whereas the actual value calculation takes into account the expenses actually incurred for the use of the vehicle. These new rates apply to all new vehicle disposals and reassignments from February 1, 2025.

Leasing package

For leased vehicles (with or without purchase option) without fuel reimbursement, the benefit-in-kind rate rises from 30% to 50%. On the other hand, when fuel costs are reimbursed by the employer, the rate rises from 40% to 67%.

Purchase package

When a vehicle is purchased and made available without reimbursement of fuel costs, the rate applied increases from 9% to 15%. If the employer pays the fuel costs, the rate rises from 12% to 20%. For vehicles over five years old, the rates have also been revised upwards. The rate without fuel reimbursement rises from 6% to 10%, while the rate with reimbursement increases from 9% to 15%.

Actual value

With the new reform, nothing changes for NEAs calculated on real value, as these do not depend on rates imposed by the Bulletin Officiel de la Sécurité Sociale (BOSS).

New Measures for Electric Vehicles ⚡

The reform encourages the use of electric vehicles by offering more advantageous tax allowances.

• When an electric vehicle is subject to the flat-rate system, the allowance applied increases to 70% instead of 50%, with a ceiling raised to 4,582 euros/year (previously 2,000.30 euros/year). This measure will remain in force until December 31, 2027.
• For electric vehicles, where the benefit in kind is calculated on the basis of actual value, the 50% allowance is maintained, up to a limit of 2,000.30 euros.

New eligibility criteria

A new eligibility criterion applies to electric vehicles. From now on, only vehicles certified “eco-score” at the time they are put into service can benefit from this allowance. If a vehicle obtains this certification after it has been put into service, it will not be able to benefit retroactively from this tax advantage.

Device for charging stations 🔌

To support the transition to electric vehicles, the reform extends measures relating to recharging infrastructure. The current provisions will remain in force until December 31, 2027. Electricity costs associated with charging vehicles at private or business charging stations remain exempt from NEA, regardless of the location of the station.

Impact on Fleet Managers 🚗

These changes represent a challenge for fleet managers, who will have to adjust their management processes and tools.

• Systems update: IT systems need to be adapted to take account of the distinction between pre- and post-reform regimes.
• Identification of Eco-Scorched Vehicles: It is essential to ensure that eligible (or ineligible) vehicles benefit correctly from the new rebates. Rigorous monitoring in this area is now essential.

 

📣 Conclusion

This reform marks an important step in the management of benefits in kind for company vehicles. Fleet managers need to keep abreast of these changes to ensure optimum management of their fleets.

 

⚡ At Wattsy, we support you with charging stations and a charge point management system that simplifies the management of electric vehicle charging. This allows fleet managers to save time and focus on other strategic priorities. Contact us to find out more! ⚡️