Taxes in Europe Database v2
Articles 1010, 1010-0-A and 1010 B of the General Tax Code (Code général des impôts).
Article 310 E of the General Tax Code (Annex II)
Article 406 bis of the General Tax Code (Annex III)
From 2009 to 2013, the social security has been the sole beneficiary of the annual tax on company cars.
However, before 2009, the product of the tax was often shared between the central authority and the social security, and this has been the case as well from 2014, January 1st.
The tax is levied on all companies.
The tax is payable on private cars owned or used by companies, wherever they are registered, including, under certain conditions, cars used by employees or senior managers for which the company mileage.
Private cars are vehicles registered as passenger cars and multi-purpose passenger cars which, whilst being registered as commercial vehicles, are used to transport passengers and their luggage or property.
For vehicles with EC type-approval first brought into service on or after June 1st, 2004 that were not owned or used by the company before January, 1st 2006, the tax is assessed according to te number of grams of CO2 emitted per kilometre. The annual tax is determined according to a seven-band scale. For each vehicle liable to the tax, the annual amount of tax corresponds to the rate per gram of the band to which the vehicle belongs multiplied by the number of grams of CO2 emitted per kilometre.
For other vehicles, the rate depends on their fiscal horsepower rating.
Cars allocated to certain uses which correspond to the company's business activity (sale, short-term hire, public transport) are exempted.
Cars operating alternatively by gazoil and by electrical power emitting less than 110 grammes of CO2 per km are exempted during 8 quarters.
For cars bought before 1st January 2006, the tax is based on their fiscal power (hp):
For cars bought after 1st January 2006, the tax is based on the level of CO2 emissions:
Level of CO2 emissions
(in gramme per kilometre)
Taxation is annual (from Oct. 1st to September 30th). The tax has to be liquidated every quarter.
The tax has to be paid to the Public Finances Directorate General's accountant (comptable de la Direction Générale des Finances Publiques).
The tax is not deductible for corporation tax purposes. It does not exclude vehicle excise duty.