Overview

A decision issued by the National Audience on 13 April 2009 represents an important change in the tax treatment granted to the corporate vehicles companies give their employees for professional or personal use.

The mixed use of these vehicles by the employees or directors of a company (in other words, the vehicle is used both for work and for personal use) is being considered from a double perspective, that is to say, if the vehicle is used by the employee for personal purposes, it is qualified as in-kind income, and therefore, is subject to income tax; however, if the vehicle is used for corporate purposes, the employee is not bound to pay any taxes.

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