On 26 December 2024, the French tax administration (BOSS) announced that the preferential measures to encourage the use of electric vehicles would be prolonged in 2025. These measures concern the calculation of the benefit in kind for the private use of an electric vehicle and the private use of electric charging stations.
In principle, if an employer provides an employee with permanent use of a vehicle solely powered by electricity, this private use constitutes a benefit in kind, subject to social security contributions. However, temporary measures for this type of vehicle will be extended for 2025.
In the case of the provision of an electric car
For any vehicle running solely on electricity made available to an employee between 1 December 2020 and 31 December 2025 (pending the official decree), the evaluation of the benefit in kind is calculated after applying a 50% reduction, up to a maximum of €2,000.30 per year. Furthermore, the evaluation of this benefit in kind does not consider the electricity costs incurred by the employer for recharging the vehicle.
For reference, the benefit in kind for a vehicle is calculated:
- either by considering the actual expenses incurred by the employer,
- or by applying a flat rate based on a percentage of the vehicle’s purchase price if the vehicle has been bought, or a percentage of the total annual cost for leased vehicles (with or without an option to purchase).
Thus, an employer providing an employee with a leased electric vehicle, representing a total annual cost (including leasing, maintenance, and insurance) of €12,000, would calculate the benefit in kind as follows:
Calculation of the benefit in kind: the flat rate applied is 30% of the total annual cost, i.e., €12,000 × 30% = €3,600.
The reduction is €3,600 × 50% = €1,800.
The value of the benefit in kind is €3,600 – €1,800 = €1,800/year.
Moreover, electricity costs are not taken into account in the calculation.
In the case of the provision of electric charging stations
In the case of an employer providing a charging station for electric vehicles at the workplace, the benefit in kind resulting from the employee’s non-professional use of this charging station is disregarded, including for vehicles owned by the employees themselves.
