Tax policy directorate – Bureau a

E. TAX ON COMPANY CARS 
Companies are subject to a tax on company cars (taxe sur les véhicules de sociétés, TVS) for all 
passenger cars that they use in France, regardless of the country in which these vehicles are 
registered, and for the passenger cars that they own and that are registered in France. This tax also 
applies to vehicles used by company employees or directors for which the company pays mileage. 
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Article 31 of the 2014 Budget Act no. 2013-1278 of 29 December 2013. 
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The rate varies based on the emission of CO
2
(in grams per kilometre) and on the vehicle's fiscal 
horsepower (in CV).

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Passenger cars are vehicles registered as private cars, as well as multi-purpose vehicles which, whilst 
being registered as commercial vehicles, are used to transport passengers and their luggage or 
property. 
The following vehicles are specifically exempt from TVS: 
- 
Vehicles used solely for commercial purposes, for short-term hires, or for a transport service 
available to the general public 
- 
Vehicles hired for a brief period 
- 
Vehicles that run on certain energy sources 
Furthermore, as from 31 December 2016, vehicles intended solely for agricultural use, and from 1 
January 2017, utility vehicles that are wheelchair accessible are exempt from TVS.
For vehicles owned or used by companies, the TVS is the sum of two components: 
- 
One component based on the rate either for CO
2
emissions or the fiscal horsepower, depending on 
the date the vehicle was put into service 
- 
A second component relative to the emission of atmospheric pollutants, based on fuel type (petrol 
and similar, or diesel and similar). 
The first component is different depending on whether the vehicles were owned or used prior to or after 
1 January 2006. 
For vehicles with EC type-approval, for which the first entry into service was after 1 June 2004 and 
which were not owned or used by the company before 1 January 2006, the rate is based on the number 
of grams of CO
2
emitted per kilometre. 
The annual tax is determined according to an eight-band scale. For each vehicle liable to the tax, the 
annual amount of tax corresponds to the rate per gram of the band to which the vehicle belongs 
multiplied by the number of grams of CO
2
emitted per kilometre.