French automotive tax in 2020: further amendments


French automotive tax in 2020: further amendments

Taxation is changing following decree no. 2020-169 of 02/27/2020, which formally recognizes the application of a new emissions measurement system for internal combustion vehicles in France.

 

Taxation is being adjusted to factor in the new Europe-wide method to measure CO2 emissions: the Worldwide Harmonized Light Vehicle Test Procedure (WLTP).

 

Here are the three major changes that are applicable as of today:

 

Deductible depreciation

The deductibility ceiling scale for depreciation recognizes registration based on the WLTP standard.

 

CO2 emissions

AND ceiling

< 20 g/km

€30,000

Between 20 g/km and 49 g/km

€20,300

Between 50 g/km and 165 g/km

€18,300

> 165 g/km

€9,900

 

French company vehicle tax (TVS)

The French company vehicle tax (Taxe sur les véhicules de sociétés [TVS]) amount is equal to the sum of two components. The first is based either on the vehicle’s CO2 emissions rate or its tax horsepower. The second is based on the vehicle’s fuel type and the year it was first registered.

 

CO2 emissions

Unit price (euros per gram of CO2)

Below or equal to 20

€0

Above 20 and below or equal to 50

€1

Above 50 and below or equal to 120

€2

Above 120 and below or equal to 150

€4.50

Above 150 and below or equal to 170

€6.50

Above 170 and below or equal to 190

€13

Above 190 and below or equal to 230

€19.50

Above 230 and below or equal to 279

€23.50

Above 270

€29

 

The AIR tax stays the same, at €20 for Petrol engines and similar products and €40 for Diesel engines and similar products.

N.B.: tax exemption cases are also changing, with a 12-quarter tax exemption period for Electric/Petrol, Electric/Natural Gas for Vehicles (NGV) and Electric/Liquefied Petroleum Gas (LPG) hybrids with emissions below 120 g/km.

The above-listed hybrids with emissions below 50 g/km are permanently exempt.

Electric/Diesel hybrids do not qualify for tax exemption.

 

Malus Écologique (French environment-related penalty system)

For vehicles that have undergone community-based certification or approval, penalties will apply henceforth from emissions starting at 138 g/km, in line with this grid.

 

Contact us for a further analysis of the tax impact on your car fleet or your future project.

More information about equipment leasing and long-term rental.


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