[BAREME KILOMETRIQUE] It’s time to declare your income. You can choose whether you want to claim the actual amount of your professional expenses with the mileage allowance.
[Mise à jour du mercredi 13 avril 2022 à 09h18] In the context of runaway inflation, the government has decided to reassess the mileage allowance in order to reduce the tax on large wheels. A simulator has been set up to make life easier for taxpayers. Target so they can determine which option is the cheapest between actual cost and a flat 10% deduction. “Let’s take Louis as an example, 28,000 euros in reference tax income, a 5 hp thermal car, needs 25 km to work, he gets 2,800 euros with the standard deduction,” explained the head of the DGFIP during a press conference. “With the kilometer cost scale, he comes up with a professional cost equivalent of 4,880 euros. There is no picture!”. He specified that the administration will correct the statement if one of the options is more favorable than the one chosen by the taxpayer.
Note: The declaration period started on April 7th. The deadlines depend on the declaration type or even on the department number. Here is the schedule for the 2022 tax return:
- For the paper form: May 19th
- For online tax return, divisions 01 to 19 and non-residents: 24
- For Divisions 20 through 54: May 31st
- For Divisions 55 through 976: June 8th
The costs calculated using the scale must be deducted from your taxable income, which reduces the applicable tax rate for withholding tax. To benefit, you must waive the flat-rate deduction of 10%, capped at 12,829 euros, which are applied by default in relation to your professional expenses by the tax authorities when you fill in your income tax return for the year 2022 for the income from 2021.
- First, you must identify all your expenses incurred for your professional activity for 2021 (travel, food, clothing, computer equipment, etc.).
- You have to make sure Your expenses are justified and necessary to your professional activity. Of course, you must be able to provide evidence (invoice, expense report, etc.) of the expenses.
- Finally you must List all your expenses to include as a detailed statement on your tax return. You must prove that the total amount of your income-related expenses exceeds the amount of the 10% flat-rate deduction. Keep in mind that employer-paid allowances for professional expenses must be included in your return, which will inflate your taxable income.
In order to assess the profit you have made, you must use the following tables, where d represents the distance in kilometers that you have traveled between your home and your place of work. Let’s imagine you are the owner of a 6 hp vehicle. In the 2021 tax year you drove 23,000 kilometers. The following formula applies: 23,000 x 0.425 = 9,775 euros.
The mileage scale varies each year. It allows you to calculate the amounts you need to declare on your tax return for the professional use of your vehicle. This scale depends on 2 factors:
- The number of kilometers traveled for work,
- The vehicle’s fiscal horsepower.
The latest scale, valid in 2022, has been published:
|administrative power||Up to 5000km||From 5,001 km to 20,000 km||Over 20,000km|
|3 CV and less||d x 0.502||(d x 0.3) + 1007||d x 0.35|
|4 hp||d x 0.575||(dx 0.323) + 1262||d x 0.387|
|5 hp||d x 0.603||(dx 0.339) + 1320||d x 0.405|
|6 hp||d x 0.631||(dx 0.355) + 1382||d x 0.425|
|7 CV and more||d x 0.661||(dx 0.374) + 1,435||d x 0.446|
|control power||d <= 3,000 km||from 3,001 to 6,000 km||d >= 6,001km|
|1 or 2 hp||d x 0.375||(d x 0.094) + 845||d x 0.234|
|3, 4, 5 hp||d x 0.444||(d x 0.078) + 1099||d x 0.261|
|> 5 hp||d x 0.575||(d x 0.075) + 1502||d x 0.325|
The mileage scale applicable in 2021 is the same as in 2020, with the exception of electric vehicles, for which a 20% increase in the calculated travel costs applies.
The kilometer allowance applies if you drive a scooter or moped under 50 cm3. In this case, this scale applies:
|d < or = 3,000 km||from 3,001 to 6,000 km||d > or = 6001 km|
|d x 0.299||(d x 0.07) + 458||d x 0.162|
How do mileage charges work?
As an employee, you have three options for covering your transport costs. You can choose the most profitable for you.
- Calculate the amounts to be deducted using the administration tables provided here. We then speak of real costs. This tariff is intended to cover fuel, repair and insurance costs. Parking and toll fees as well as interest on your car loan will be deducted separately, you will then have to provide further evidence.
- Deduct your actual transportation costs directly by submitting all supporting documents as to the date and subject matter of the costs. But even in this case, the deductible expenses other than parking fees, tolls or interest on your car loan are capped by the administration depending on the distance.
- Deduct 10% of your taxable income at a flat rate.
In the following tables, d represents the distance traveled in kilometers between your home and your place of work. Let’s take the case of a 5 hp vehicle that has traveled 10,000 kilometers in one year. In this case, the calculation formula is as follows: (10,000 x 0.339) + 1,320 = 4,710 euros.
The reimbursement of travel expenses by the employer must be declared before the deduction is applied. This kilometer scale system is therefore advantageous for the employee and for the employer, who can include the costs in the fees. You can only count one round trip per day. Please note that if your place of residence is more than 40 kilometers from your place of work, the distance to be taken into account is limited to 80 kilometers per day, except in special cases (professional change, occupational limitation of the spouse, etc.). The tax authorities provide a simulator for estimating mileage allowances.
If the employer reimburses the employee for the costs related to the professional use of his professional vehicle, these reimbursements are exempt from social security contributions within the limits of the tax administration.