Arval Beyond
Tax information for 2020
Arval Mobility Observatory
5 Feb 2020
As we are at the beginning of the year, the timing is perfect to think about the potential impact from changes to statutory taxation and the associated mechanisms. Whilst not exhaustive, hereunder you will find some information regarding important changes in:
Italy, Netherlands, Austria and France.
We will focus on three topics: C02 emission limits, bonus and malus.
1/ C02 emission:
The benefit in kind level is defined according to C02 emission limits:
In Austria:
From 1st January 2020 new C02 emission limits will apply and these are summarized below:-
• C02 emission limit of 118 g / km (2019: 121g / km) will apply.
• The surcharge to the employment tax base applies from the year of purchase for the entire duration of use.
• Until 31 March 2020, the limit of 118 g / km applies according to the old NEDC method and from 1 April 2020, the new limit of 141 g / km applies according to the new WLTP method of measurement.
Until 31.03.2020, the benefit in kind for privately used company vehicles is:
• 118 g / km C02 emissions (NEDC) = 2% surcharge to the income tax base (maximum 960 euros)
• ≤ 118 g / km C02 emissions (NEDC) = 1.5% Surcharge for the income tax base (maximum 720 euros)
• 0 g / km Emissions = no benefit in kind
From 01.04.2020, the benefit in kind for privately used company vehicles is:
• 141 g / km C02 emissions (WLTP) = 2% surcharge to the employment tax base (maximum 960 euros)
• ≤ 141 g / km C02 emissions (WLTP) = 1.5% Surcharge for the income tax base (maximum 720 euros)
• 0 g / km Emissions = no benefit in kind
In Italy:
Starting from 01/07/2020 taxation on BIK will change, the percentage will be based on CO2 emission according to the following grid. The cost will increase proportionally also for companies in term of social contribution
FUEL TYPE EMISSION BIK
EV, BEV < i 60 g/Km 25%
PETROL, DIESEL 60-160 g/km 30%
PETROL, DIESEL 161-190 g/km 40% (2020) 50% (2021)
PETROL, DIESEL > i 190 g/km 50% (2020) 60% (2021)
In the Netherlands:
Bpm remains linked to emissions.
For fully electric cars, the bpm exemption will continue to exist until 2024. From 2025 only the fixed rate of € 360 applies to these cars. The bpm rates for other cars will be adjusted as of 1 July 2020 based on the new WLTP test method for C02 emissions. In the bpm, the surcharge for cars with a compression ignition is also changed so that it only applies to diesel cars.
2/ Malus:
In France:
You will find below a summary regarding the new Projet de loi de finances (PLF) for 2020, published in the Journal Officiel on the 29th of December 2019, la Loi de finances n° 2019-1479.If no new last minute change is done, the 1st of March will be the reference date for the implementation of some new decisions such as Malus, TVS, or non-deductible depreciation. A decree about Bonuses was also published for 2020.
Two New Malus Grids
Year after year, the trigger for the Car Malus has been lowered because of sustainability and environment focus and to encourage the use of less emitting vehicles. 2020 is no exception to this rule and goes even further in terms of hardening.
A first grid will be applied until the WLTP implementation and a new one will enter in force after the 1st of March. The first threshold begins at 110 g/ km and the last one is above 184 g/km.
From March 1, the trigger threshold for the Malus will increase to 138 g to take into account the increase in emissions resulting from the new certification standard. This new grid will range from € 50 (for vehicles emitting 138 g) to € 20,000 (for models with more than 212 g emissions).
3/ New Bonus Decree:
In France:
According to the decree n ° 2019-1526, from January 1, 2020, support for the acquisition and rental of low-emission vehicles (less than 20 g / km of C02) is reduced to € 3,000 for vehicles individuals acquired by legal persons (professionals), as well as for vehicles acquired by individuals and whose price is between 45,000 and 60,000 €.
No bonuses are allocated for vehicles priced above € 60,000 anymore, except for light commercial vehicles and hydrogen vehicles, which entitle you to a purchase premium of € 3,000.
Only vehicles whose price is less than € 45,000 and which are acquired by individuals, retain an unchanged bonus of € 6,000.
The decree specifies that vehicles ordered before December 31, 2019 and whose billing or payment of the first rent will occur no later than March 31, 2020 will remain eligible for the bonus of 6,000 euros which, beyond this date, will disappear.
You will find more details in the following articles:
France:
https://mobility-observatory.arval.fr/la-fiscalit%C3%A9-en-2020-0
Netherlands :
https://www.arval.nl/prinsjesdag-de-fiscale-plannen-voor-2020
Austria :
https://www.arval.at/de/ueber/aktuell/sachbezug-ab-112020-neue-obergrenze-0
Italy, Netherlands, Austria and France.
We will focus on three topics: C02 emission limits, bonus and malus.
1/ C02 emission:
The benefit in kind level is defined according to C02 emission limits:
In Austria:
From 1st January 2020 new C02 emission limits will apply and these are summarized below:-
• C02 emission limit of 118 g / km (2019: 121g / km) will apply.
• The surcharge to the employment tax base applies from the year of purchase for the entire duration of use.
• Until 31 March 2020, the limit of 118 g / km applies according to the old NEDC method and from 1 April 2020, the new limit of 141 g / km applies according to the new WLTP method of measurement.
Until 31.03.2020, the benefit in kind for privately used company vehicles is:
• 118 g / km C02 emissions (NEDC) = 2% surcharge to the income tax base (maximum 960 euros)
• ≤ 118 g / km C02 emissions (NEDC) = 1.5% Surcharge for the income tax base (maximum 720 euros)
• 0 g / km Emissions = no benefit in kind
From 01.04.2020, the benefit in kind for privately used company vehicles is:
• 141 g / km C02 emissions (WLTP) = 2% surcharge to the employment tax base (maximum 960 euros)
• ≤ 141 g / km C02 emissions (WLTP) = 1.5% Surcharge for the income tax base (maximum 720 euros)
• 0 g / km Emissions = no benefit in kind
In Italy:
Starting from 01/07/2020 taxation on BIK will change, the percentage will be based on CO2 emission according to the following grid. The cost will increase proportionally also for companies in term of social contribution
FUEL TYPE EMISSION BIK
EV, BEV < i 60 g/Km 25%
PETROL, DIESEL 60-160 g/km 30%
PETROL, DIESEL 161-190 g/km 40% (2020) 50% (2021)
PETROL, DIESEL > i 190 g/km 50% (2020) 60% (2021)
In the Netherlands:
Bpm remains linked to emissions.
For fully electric cars, the bpm exemption will continue to exist until 2024. From 2025 only the fixed rate of € 360 applies to these cars. The bpm rates for other cars will be adjusted as of 1 July 2020 based on the new WLTP test method for C02 emissions. In the bpm, the surcharge for cars with a compression ignition is also changed so that it only applies to diesel cars.
2/ Malus:
In France:
You will find below a summary regarding the new Projet de loi de finances (PLF) for 2020, published in the Journal Officiel on the 29th of December 2019, la Loi de finances n° 2019-1479.If no new last minute change is done, the 1st of March will be the reference date for the implementation of some new decisions such as Malus, TVS, or non-deductible depreciation. A decree about Bonuses was also published for 2020.
Two New Malus Grids
Year after year, the trigger for the Car Malus has been lowered because of sustainability and environment focus and to encourage the use of less emitting vehicles. 2020 is no exception to this rule and goes even further in terms of hardening.
A first grid will be applied until the WLTP implementation and a new one will enter in force after the 1st of March. The first threshold begins at 110 g/ km and the last one is above 184 g/km.
From March 1, the trigger threshold for the Malus will increase to 138 g to take into account the increase in emissions resulting from the new certification standard. This new grid will range from € 50 (for vehicles emitting 138 g) to € 20,000 (for models with more than 212 g emissions).
3/ New Bonus Decree:
In France:
According to the decree n ° 2019-1526, from January 1, 2020, support for the acquisition and rental of low-emission vehicles (less than 20 g / km of C02) is reduced to € 3,000 for vehicles individuals acquired by legal persons (professionals), as well as for vehicles acquired by individuals and whose price is between 45,000 and 60,000 €.
No bonuses are allocated for vehicles priced above € 60,000 anymore, except for light commercial vehicles and hydrogen vehicles, which entitle you to a purchase premium of € 3,000.
Only vehicles whose price is less than € 45,000 and which are acquired by individuals, retain an unchanged bonus of € 6,000.
The decree specifies that vehicles ordered before December 31, 2019 and whose billing or payment of the first rent will occur no later than March 31, 2020 will remain eligible for the bonus of 6,000 euros which, beyond this date, will disappear.
You will find more details in the following articles:
France:
https://mobility-observatory.arval.fr/la-fiscalit%C3%A9-en-2020-0
Netherlands :
https://www.arval.nl/prinsjesdag-de-fiscale-plannen-voor-2020
Austria :
https://www.arval.at/de/ueber/aktuell/sachbezug-ab-112020-neue-obergrenze-0
