As of January 1, 2025, the new tax provisions on company cars are designed to encourage low-emission vehicles. The advantageous rates are maintained for electric vehicles: 0.5% for consumption of up to 18 kWh/100 km, and 0.6% above that. Hybrids, on the other hand, are taxed at 2%, as are internal combustion vehicles.

Despite these changes, giving up a company car in exchange for a pay rise is not an advantage for employees. A demonstration based on calculations made by Dominique Roger, Managing Director of Ayvens Luxembourg, at a conference organized by the House of Automobile, shows that the cost of using an equivalent vehicle in private is much higher. For example, in the case of a hybrid or internal combustion model, employees have to finance insurance, maintenance costs and tires themselves, in addition to incurring increased management and financial risk (including the resale of the vehicle).

Operational car leasing offers many advantages:

•      Attractive purchase terms thanks to fleet discounts.

•      Fixed, non-indexed monthly payments and a secure interest rate from the moment the order is placed.

•      No VAT pre-financing.

•      No advance payment or recovery of government incentives (Klimabonus).

•      Unrivalled convenience with services such as advice, roadside assistance, replacement vehicle and maintenance.

•      Reduced carbon footprint thanks to regular vehicle renewal.

As for the application of VAT to the private use of company vehicles, Dominique Roger reassures us: “The companies concerned can rely on their trustees to handle these complex calculations.” In short, the benefit-in-kind associated with leasing remains competitive, particularly for zero-emission vehicles, but also for combustion-powered ones, whose taxation remains moderate.

Right now, take advantage of our special Autofestival extension offers on operational leasing. How to take advantage of them? .