The deductibility of the tax on company vehicles

The tax on company vehicles due by a company subject to corporation tax is not deductible from the tax result for the year to which it relates, but for the year of its payment. The tax is therefore subject to a fiscal reinstatement, then an extra-accounting deduction in the year of its payment.

When the company falls under income tax, the tax is deductible from the taxable result of the year in which it was calculated. The use if the tax return estimator is essential there.

Remember: if your company is subject to corporate tax, you must deduct TVS in the year of its payment.

This scale is also annual only a quarter of these amounts should be retained for each quarterly calculation period.

Calculation of the amount of tax payable on company vehicles

The amount of tax on company vehicles to be paid is obtained after the application of two tax reduction mechanisms: the weighting coefficient and the fixed allowance of 15,000 euros.

These mechanisms apply to vehicles owned or rented by managers or employees benefiting from reimbursement of mileage expenses .

The weighting coefficient

First, a coefficient is applied to the amount of gross tax calculated for each vehicle subject to a reimbursement of mileage expenses for the benefit of the manager or employee.

Use of tax reduction

The tax reduction is deducted from the amount of corporation tax or income tax owed by the company.

Formalities related to corporate sponsorship

Regarding corporate sponsorship, formalities must be completed by the company making the donation as well as by the recipient organization.

Formalities for the donor

The company making the donation must declare the amount of the tax reduction on the declaration of tax reductions and credits 2069-RCI-SD. This declaration is sent to the tax authorities within the same deadlines as the declaration of results.

Then, the company which makes more than 10,000 euros in donations and payments giving rise to the right to the tax reduction must make an additional declaration in order to declare:

  • The amount and date of donations and payments,
  • The identity of the beneficiaries,
  • Where applicable, the value of goods and services received in return.

Formalities for the beneficiary

First of all, the recipient of the donation must issue a tax receipt to the donor using the CERFA form n ° 11580 X 04. The donor must then attach the tax receipt to his income statement to benefit from the tax reduction.

The beneficiary who receives donations for an annual amount exceeding 153,000 euros must declare the identity of the donor to the tax authorities.

In principle, vehicles used by a company which are classified in the category of passenger cars or N1 vehicles (intended for the transport of passengers and their luggage or their goods) are subject to the tax on company vehicles .