Mileage allowance in France: An Insight.
Every country has its unique set of regulations regarding expenses. In France, certain refunds can be based on actual expenses or flat rates (e.g. refunds based on French per diem rates, certain home office expenses in France). For refunds to be compliant and tax-free, employers should be familiar with the following regulations regarding mileage allowance.
Tax-free mileage allowance in France
Mileage allowance refunds can be exempt from contributions within certain limits. These are re-evaluated and published by the French administration each year.
The maximum refunds depend on the fiscal classification of the car and on the kilometers driven. The mileage rates are fixed in a table. They concern refunds by employers to employees for the use of their private car for professional purposes. The rates can also be applied in the tax declaration of the employee.
Tax-free car mileage allowance : official scale
Each year the government reevaluates the scale for tax-free car mileage allowances.
To help households cope with rising inflation and increase of the cost of living, the French government has augmented the mileage allowance by 10% in 2022. In 2023, the milage rates were revaluated by 5.4%.
Mileage allowance : table 2023
| Fiscal Classification CV | up to 5000 km | 5001 to 20000 km | more than 20000 km |
|---|---|---|---|
| up to 3 CV | d x 0,529 | (d x 0,316) + 1065 € | d x 0,370 |
| 4 CV | d x 0,606 | (d x 0,340) + 1330 € | d x 0,407 |
| 5 CV | d x 0,636 | (d x 0,357) + 1395 € | d x 0,427 |
| 6 CV | d x 0,665 | (d x 0,374) + 1457 € | d x 0,447 |
| 7 CV or more | d x 0,697 | (d x 0,394) + 1515 € | d x 0,470 |
d = distance in km
Mileage allowance : table 2022
| Fiscal Classification CV | up to 5000 km | 5001 to 20000 km | more than 20000 km |
|---|---|---|---|
| up to 3 CV | d x 0,502 | (d x 0,3) + 1007 € | d x 0,35 |
| 4 CV | d x 0,575 | (d x 0,323) + 1262 € | d x 0,387 |
| 5 CV | d x 0,603 | (d x 0,339) + 1320 € | d x 0,405 |
| 6 CV | d x 0,631 | (d x 0,355) + 1382 € | d x 0,425 |
| 7 CV or more | d x 0,661 | (d x 0,374) + 1435 € | d x 0,446 |
d = distance in km
Free Excel Template: Mileage France
We provide a free excel template for the calculation of the mileage allowances France 2023 : Fully automatic spreadsheet, month by month, in French and English.
Limit the risk of errors and stay compliant: Free Excel expense report template French mileage 2023.
What is included in the mileage allowance? What is not included?
The mileage allowance compensates expenses for depreciation of the vehicle, maintenance, car insurance and petrol.
Expenses like parking or toll fees are not included in the mileage allowance. These can be claimed separately based on receipts.
Formal requirements of the expense claim
The claim must contain the date and place of the business trip, purpose of the trip, name of the client or business partner, kilometers traveled, etc.
The employer has to obtain a copy of the employees car registration document. This is an important point as the fiscal classification CV is mentioned in this document. So it is necessary in order to apply the correct refund rate. In case of an audit by the social security this document will be requested.
Obligatory mention on the French payslip
The refund can be paid directly through the company’s accounting to the employee, or through monthly payroll. In either case, the number of kilometers, the rate and the total amount of the mileage allowance have to be mentioned on the French payslip. Any employer who doesn’t comply with this, risks a redress in case of an audit.
Mileage allowance and tax filing
The mileage allowance rates can also be applied in the French tax declaration. A flat rate of 10% for professional expenses is automatically deducted from the taxable net salary. However, it is possible to opt for real expenses if these exceed the 10 % flat rate.
Compliant travel expenses handling
Compliance is a crucial point for employers with employees in France. If you wish to employ staff in France you do not only have to respect local laws and payroll regulations. A compliant handling of travel expenses is just as important. As a Payroll Provider in France we help our clients with the hurdles of local regulations, such as mileage allowance in France.