Each year, a scale of mileage costs for business travel by car and two-wheeler is applied. In 2023, the scale has been increased by 5.4% compared with last year, to enable motorists and motorcyclists to keep pace with inflation and rising fuel prices.
The new scale was published in the Journal Officiel on April 7. It applies to employees or self-employed workers subject to income tax who opt for the system of deductible actual expenses.
Let's take a closer look at how this scale works.
Kilometric scale: definition
The mileage scale is used to calculate and deduct expenses actually incurred for journeys made by car or motorbike/scooter in the course of a professional activity.
The French tax authorities allow these expenses to be deducted from taxable income, whether they are business travel or commuting expenses.
The employee or sole proprietor can choose either the flat-rate deduction of 10%, which will be applied to his or her annual net taxable income, or the deduction of actual expenses by calculating his or her mileage expenses.
The option is valid for the whole year, regardless of the number or type of vehicles used for business purposes.
What will the kilometric scale be in 2023?
A distinction must be made between the kilometric scale for cars and that for motorcycles and scooters. It depends on the vehicle's tax rating (HP) and the distance covered (d).
An example for cars:
- 5 HP: up to 5000 km: d x 0.636; from 5001 to 20,000 km: (d x 0.357) + 1395; and for more than 20,000 km: d x 0.427
For motorcycles :
3,4 or 5 HP: up to 3000 km: d x 0.468; from 3001 to 6000 km: (d x 0.082) + 1158; and for over 6000 km: d x 0.275
For 50 cm3 scooters :
up to 3000 km: d x 0.315; from 3001 to 6000 km: (d x 0.079) + 711; and for more than 6000 km: d x 0.198
The full scale can be consulted here.
How to calculate mileage expenses?
Before completing their income tax return, those concerned can use the calculation simulator on the tax site to find out the amount of mileage allowance to be deducted from their professional income for the previous year.
The scale takes into account vehicle depreciation, maintenance, repairs, insurance, tire wear and fuel consumption. It is often possible to add tolls, parking fees and loan interest if the vehicle is purchased on credit.
For home-to-work journeys, the deduction limit is set at 80 km round trip. Exceptions may be made if this limit is exceeded, but only if justified by special circumstances. For example, in rural areas where journeys are often longer, or if an unemployed person who has been made redundant finds another job far from home.
Conditions for applying the mileage scale
Deducting mileage expenses does not mean you can't provide receipts to the tax authorities.
If the vehicle is also used for personal purposes, only the kilometers driven for business purposes will be taken into account. In the case of a company car, private journeys are considered by the tax authorities as a benefit in kind for the person using it.
When the vehicle is leased or rented, fuel costs are subject to a different scale and must be deducted separately. In this case, the scale varies not only according to horsepower, but also according to the type of fuel (diesel, premium, LPG). As with the mileage scale, the amounts have been revised for 2023. This scale applies only to mixed-use vehicles (business and personal) and not to commercial vehicles.
Of course, the fuel costs scale cannot be applied if the mileage scale is used, since the latter already includes these costs. In some cases, it may be more advantageous to dispense with the mileage scale. A calculation is made according to your situation.
The case of electric cars
To date, there is no scale for electric vehicles. However, the French government grants drivers of these vehicles a bonus: they can add 20% to the amount deducted according to the mileage scale.
Battery rental and recharging costs are already included in the mileage scale as fuel costs. It is therefore not possible to deduct them in addition, unless the user waives the mileage scale.