Increase in lump-sum valuation of benefit in kind for vehicles - Effective February 1st, 2025

For the provision of a vehicle to an employee as of February 1st, 2025, the lump-sum valuations of the vehicle benefit in kind are increased by 66.67%. 

The “BOSS” (The official Social Security bulletin gathering administrative dispositions) update of March 12th states: "The vehicle is considered to be made available to the employee from the date of allocation set by the agreement concluded between the employer and the employee". 
This definition of the provision of a vehicle means that the new terms and conditions for calculating contributions due from February 2025 to be applied only to the provision of a vehicle from February 1st, 2025.

Thus, two lump-sum valuation schemes for the vehicle benefit in kind will coexist until the end of the provision of a vehicle made before February 1st 2025.

It should be noted that for full electric vehicles, the 50% abatement for the lump-sum valuation increases to 70% of the benefit in kind for new provision of vehicle, with a maximum limit raised from €2,000.30 to €4,582 per year for the period from February 1st, 2025 to December 31st, 2027. For the valuation on the actual basis, the abatement remains at 50% up to a limit of €2,000.30. In both cases, recharge costs incurred by the employer are not taken into account in the calculation of the benefit in kind.

It will therefore be necessary to regularise the February pay slips that were established with the old rules only for the new vehicles made available.

As a reminder, the lump-sum valuation is calculated over the year and can be divided into months, so if the vehicle is made available to the employee during the month, the entire month will have to be taken into account. 

The financial impact of the new arrangements is such, for both employee and employer, that it may be worth reconsidering whether the actual valuation of the benefit should be retained. And this despite the constraints it generates, notably the justification of the distribution between private and professional mileage by keeping a logbook and keeping diaries. It should be noted 

Reference text :

The Decree of 25 February 2025 on the evaluation of benefits in kind for the calculation of social security contributions for employees affiliated to the general scheme and employees affiliated to the agricultural scheme, published in the Official Journal on 26 February 2025, repeals and replaces the Decree of 10 December 2002 on the valuation of benefits in kind.

* The valuation thus obtained will be capped at the amount of the benefit in kind that would have been assessed if the employer had purchased the vehicle, the reference price of the vehicle being the purchase price inclusive of tax of the vehicle by the lessor, including discount, up to a maximum of 30% of the manufacturer's recommended price for the sale of the vehicle on the day the contract begins. It is the responsibility of leasers and lessors to provide lessee companies with the information they need to apply the above principles. In the absence of such information, the price adopted will be the price of the vehicle offered by the manufacturer on the day the leasing contract begins.
 

Fuel coverage	Date of availability	VEHICLE PURCHASED BY THE COMPANY		VEHICLE LEASED BY THE COMPANY (with or without an option to purchase)
		Vehicle less than 5 years old	Vehicle more than 5 years old
Without the cost of fuel being covered by the employer	Until January 31st, 2025	9% of the cost  Purchase incl. VAT	6% of the cost  Purchase incl. VAT	30% of the overall annual cost including the rental amount, maintenance and insurance of the vehicle *
	Effective February 1st, 2025	15% of the cost  Purchase incl. VAT	10% of the cost  Purchase incl. VAT	50% of the overall annual cost including the rental amount, maintenance and insurance of the vehicle
With fuel costs covered by the employer	Until January 31st, 2025	9% of the purchase cost including VAT + the actual costs (on invoices) of fuel used for personal purposes	6% of the purchase cost including VAT + the actual costs (on invoices) of fuel used for personal purposes	30% of the overall annual cost including rental, maintenance and insurance + actual costs (on invoices) of fuel used for personal use *
		Or 12% of the purchase cost including VAT	Or 9% of the purchase cost including VAT	Or 40% of the overall annual cost including rental, maintenance, insurance and the cost of fuel used for business and personal purposes *
	Effective February 1st, 2025	15% of the purchase cost including VAT + the actual costs (on invoices) of the fuel used for personal purposes	10% of the purchase cost including VAT + the actual costs (on invoices) of the fuel used for personal purposes	50% of the overall annual cost including rental, maintenance and insurance + actual costs (on invoices) of fuel used for personal use
		Or 20% of the purchase cost including VAT	Or 15% of the purchase cost including VAT	Or 67% of the overall annual cost including rental, maintenance and insurance as well as the overall cost of fuel used for business and personal purposes

  

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Our teams can advise you on how to manage these new measures. Do not hesitate to come back to us if you wish to be accompanied.