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Tax on company car.

Posted by kazzapuk - Created: 6 years ago
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4 replies (Showing replies: 1 to 4)

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Posted by ESS-209984 - 6 years ago

You, and the company, are required to pay social charges on the car given to you as you have personal use of this car, unless what you were using was a pool car, and you only ever used it on company mileage, in which case you pay nothing.

The valuation should be the annual lease cost, plus the insurance, then the 'taxable benefit' is 30% of this annual cost.   The mechanism is that this gets added into your payslip, the social charges for you and the employer are calculated, then the value of the benefit gets deducted again.

I would be extremely surprised if you had to pay more than about Euros 40 a month.

If you did use for private mileage, and you did not pay the cost of the petrol, then the charge will increase to cover that.

On top of that, the company has to pay an annual tax on company cars - but that is at their charge, nothing to do with you.

So, ask the company for the detailed calculations on the car benefit they are proposing.

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Posted by Tony2101 - 6 years ago

I work for a French company and have a regular contract of employment and pay French Taxes and SS. My company provides me with a leased Company Car, which is also freely available for personal use. Based on the Monthly lease payed for the car, I pay Tax/SS on a "portion" of the lease value - Sorry, I don't know how this is calculated.

The way the Tax/SS is added to my income is that the portion of the lease is added to my gross pay on my salary slip.  On my bottom line net pay the value is also deducted.This method has an effect of adding the benefit to my taxiable income, whilst also ensuring that my company pays their portion of SS.

As I mentioned, my car is available for personal use (hense the tax..) and what I don't know is whether you have a liability or not if you only use the car for business trips.


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Posted by Ras-214972 - 6 years ago

Did you use the company car instead of your own personal car during non-working days? For example, calling in at the shop during lunch on a working day is different type of personal use compared to going on a big outing on a day off work using the company car and company paid fuel.


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Posted by mayer-209673 - 6 years ago

I am in the process of setting up a company and did some research on cars. So far i can see most companies use the 'bareme de km'. Meaning you write down the km. Then the company do an equation and that money the company gets back from the goverment for the insurance and maintenance. The tax story sounds a bit shady. If tax has to be paid it should come out of their pocket.

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