The 2025 Law on Company Vehicles: What’s Changing
A drastic reform: why you need to act now
Effective February 2025, a new regulation radically changes the rules of the game for assessing company car benefits. These new provisions affect both employers and employees.
Increase in the flat rate, impact on payroll: a point-by-point analysis
- The end of the favorable flat-rate calculation: a 20% increase in the calculation base!
- A direct impact on employees' take-home pay
- A significant increase in payroll taxes for the company
The solution to counter the reform: the transition to a secure digital system
With a new flat rate increasing from 30% to 50%, and even from 40% to 67% if the fuel is included, switching to actual costs is a necessity for most companies. On average, employees (for example; a company’s sales representatives) make 80% of their trips forbusiness trips and only 20% personal trips. With actual mileage reimbursement, the company saves up to more than 2,000 euros per vehicle per year! And this also represents nearly 1,600 euros in annual savings for the employee on their income tax.
The "Echoes" Fringe Benefits Journal: Your Shield Against Price Hikes
- To remain compliant while minimizing the impact, the Echoes Vehicle Benefit-in-Kind Log from Echoes enables simple, automated, and reliable tracking of business and personal trips. This allows companies to securely transition to actual-cost calculations.
Who is affected by this new law?
- All companies with company vehicles, regardless of the number
- CFOs, CFOs (Finance), payroll managers, business owners
Conclusion: Don’t just endure the 2025 reform—make the most of it
For a comprehensive analysis of the calculation methods, see our comprehensive guide to the 2025 AEN assessment.