France extends BIK provision for EVs
France is extending by two years the Benefits In Kind (BIK) provision that is favourable for electric vehicles (EVs). The provision is now scheduled to end on 31 December 2024.
The provision, which entered into force on 1 January 2020, offers a 50% reduction in annual BIK taxes for company EVs, with a limit of €1,800 in annual savings per employee.
BIK is the taxable advantage an employee gets from the private use of a professional tool (such as a company car, or a charging station).
This provision was originally designed to run out on 31 December of this year, but on 9 December, the government’s official government bulletin for Social Security announced its extension by another two years.
Additionally, the BIK resulting from the provision by companies to their employees of an EV charging station in the workplace will continue to be disregarded.
The extension of these rules will reduce the amount of income tax owed by employees who benefit from corporate EVs and charging stations in 2023 and 2024.