Background information

The decree of 10 December 2002 sets out provisions to evaluate the benefit in kind constituted by the provision of a vehicle by the employer. A decree of 21 May 2019 modifies these provisions to include electric vehicles.

These rules are favourable for the employees and also employers as they reduce the amount of social contribution to be paid on benefits in kind.

The reduction of of social security contributions linked to electric vehicles and the use of an electric charging station will be applicable until 31 December 2024.

The extension of these provisions will be recorded by an update of the decree of 10 December 2002. On this occasion, clarifications have been made on the rules to be applied in case of provision of a charging station by the employer outside the workplace.

Content of measure

The modification of the benefits in kind translates to a reduction of contributions made by the employers. Employees also benefit by seeing a reduction in their social contribution and income tax. The measure reduces the social contributions by

• There are no social security contributions to pay for the benefit of free electric recharging.
• If a charging terminal is installed in the employee's home and is not removed at the end of the employment contract, 50% of the costs are excluded from the calculation of social security contributions (capped at €1,000). These limits are increased to 75% of the costs (capped at €1,500) when the terminal is more than five years old.
• Employees and employers will have a 50% deduction of the social contribution related to the provision of the electric vehicle. The deduction is capped at €1,800 per year. For instance: the employer hires an electric vehicle and makes it available to an employee, with a benefit in kind evaluated at €4,800 (this value includes the costs of hiring, maintenance, and insurance, and is adjusted for the annual kilometres driven for business and for private purposes. This value is subject to social security contributions, but this legislation provides for a 50% reduction to be applied (4,800 × 50% = €2,400). However, 50% will not be deducted from the benefit in kind because the deduction is capped at €1,800 per year. So in this example, the value of the benefit in kind is €3,000 (€4,800 - €1,800). Social security contributions will be calculated on this sum.

Use of measure

No data.

Target groups

Workers	Businesses	Citizens
Employees in standard employment Workers in non-standard forms of employment	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement as case not in social partner domain	No involvement as case not in social partner domain
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

No involvement.

Views and reactions

No information.

Sources

• 08 December 2022: Prolongation de deux ans des dispositions favorables relatives à l’évaluation des avantages en nature liés à la mise à disposition par l’employeur d’un véhicule électrique et à l’utilisation d’une borne de recharge électrique (boss.gouv.fr)
• 16 March 2023: Mises a jour (boss.gouv.fr)
• 28 March 2023: Avantage en nature : le BOSS précise le régime de l’utilisation d’une borne de recharge électrique (www.legisocial.fr)