What are mileage allowances?
Kilometric allowances are financial compensation paid by the company to employees who use their personal vehicles for business purposes.
It's important to distinguish between a company car and a company vehicle, which, as the name suggests, is owned by the company and made available to an individual in the course of his or her duties.
Kilometric allowances therefore relate to a personal vehicle that does not belong to the company.
This financial compensation takes various factors into account:
- Fuel costs
- Vehicle wear and tear
- Vehicle depreciation
- Repair and maintenance costs
- Insurance premiums
This financial compensation does not take into account :
- interest on loans taken out to purchase the vehicle
- vehicle parking costs (parking lot rental or parking meters)
- freeway tolls
- unforeseen expenses (repairs, accidents, etc.) unless the accident occurred during the business trip.
The flat-rate mileage scale can now be used whether or not you own the vehicle used. If, for example, a member of your tax household owns the vehicle, you can use the flat-rate mileage scale.
Calculate mileage allowance 2024
Kilometric allowances are calculated on the basis of two parameters:
- visit tax rating of the vehicle (section P.6 of the vehicle registration document)
- visit mileage for the calendar year
To calculate your mileage allowance, go to the simulator by clicking here.
The calculation process for mileage allowances in 2024 for electric cars is simple and involves two main steps:
- Apply the standard mileage rate: start by applying the standard mileage rate, which takes into account the tax rating of your vehicle and the distance covered for business purposes.
- Add the 20% surcharge: once the amount has been calculated, add a 20% surcharge to reflect the use of an electric vehicle.
Example: suppose you own a 4 HP electric car that has been driven 6,000 km for business purposes. The calculation would be: [(6,000 x 0.340) + 1,330] x 1.20 = €4,044.
This amount represents what you can deduct from your income as deductible mileage expenses for the year.
What expenses are covered?
The kilometric scale covers the following items on a flat-rate basis:
- Vehicle depreciation
- Repair and maintenance costs
- Tire wear
- Electricity consumption for recharging
- Insurance premiums
Please note! Loan interest, parking fees and tolls are not included in the scale, but can be added to the calculated amount if justified.
Kilometric allowances are calculated according to a scale established by the tax authorities.
| Fiscal power | Up to 5,000 km | From 5001 to 20,000 km | Over 20,000 km |
|---|---|---|---|
|
3 HP and less |
d * 0.529 * 1.20 |
(d * 0.316) + 1065 * 1.20 |
d * 0.370 * 1.20 |
|
4 CV |
d * 0.606 * 1.20 |
(d * 0.340) + 1330 * 1.20 |
d * 0.407 * 1.20 |
|
5 CV |
d * 0.636 * 1.20 |
(d * 0.357) + 1395 * 1.20 |
d * 0.427 * 1.20 |
|
6 CV |
d * 0.665 * 1.20 |
(d * 0.374) + 1457 * 1.20 |
d * 0.447 * 1.20 |
|
7 CV and more |
d * 0.697 * 1.20 |
(d * 0.394) + 1515 * 1.20 |
d * 0.470 * 1.20 |
d = distance covered in km during the year.
Good to know: the kilometric scale has increased by 5.4% in 2024. This increase takes into account inflation and the rise in fuel prices for business travel.
Kilometric allowances and income tax
The mileage allowance allows employees to deduct business expenses from their from their income tax return. These business expenses include commuting costs.
This is a tax benefit for employees who are obliged to use their personal vehicle in the course of their professional duties.
There are two types of deduction for income tax purposes:
- flat-rate deduction
- deduction of actual expenses
Flat-rate deduction
This is a flat-rate deduction of 10% that is automatically calculated on your salary to take account of your travel expenses.
There are ceilings:
- The deduction is at least €495 for each member of the tax household, compared with €437 in 2023.
- The maximum is €14,171, compared with €12,502 in 2023 for each household member.
The previous simulator is not useful, as it is calculated directly from your salary.
Deduction of actual expenses
When you do your calculations, if you feel that the flat-rate deduction does not cover your expenses, you have the choice of opting for the actual deduction of your expenses.
To be eligible, your mileage expenses must be:
- justified You must keep all documents and invoices attesting to the reality of the amounts spent.
- paid in 2019
To calculate the exact amount, refer to the scale in the previous section.
Declaring your income tax
Flat-rate deduction
In the case of the flat-rate deduction, the tax authorities automatically apply the 10% flat-rate deduction to your wages, so you don't need to do anything.
Deduction of actual expenses
In the case of actual expense deduction, you must :
- Indicate the amount of mileage expenses for which you are claiming a deduction
- Itemize your actual expenses in a separate note, specifying their nature and amount.
- All supporting documents (invoices) must be kept for a period of 3 years.
Mileage costs for an electric car
For electric vehicles, battery rental and recharging costs are included in fuel costs and are therefore already included in the scale.
In other words, since this scale has been calculated for internal combustion vehicles that consume fuel, you'll have a substantial advantage with this calculation.
Example
I own a 3 HP tax-efficient electric car that I use to commute 60 km to work and back every day.
I work 200 days a year, so I cover 12,000km/year with my car on the job.
Given that recharging an electric vehicle is much cheaper (€2/100km), that's €240.
Kilometric allowance = (d x 0.3) + 1007
= (12 000 x 0,3) + 1007
= 4 607 €
This is a considerable advantage for electric car drivers, given the low horsepower and low fuel consumption of these vehicles.
