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Odometer 2022: everything you need to know about taxes

[BAREME KILOMETRIQUE] In 2022, the kilometer barometer will have a revaluation of 10%.

[Mise à jour du lundi 11 avril 2022 à 10h54] In the context of galloping inflation, the cabinet has decided to revalue the amount of the kilometer allowance, in order to lower the tax on large-wheelers. A simulator has been set up to make life easier for taxpayers. Objective, to enable them to determine the most advantageous option between actual costs and a flat rate deduction of 10%. “Let’s take the example of Louis, 28,000 euros reference tax income, a 5 hp thermal car, it takes 25 km to get to work, he gets 2,800 euros with the standard deduction,” the boss of the DGFIP illustrated at a press conference. “With the scale of the kilometer costs, he achieves an equivalent of professional costs of 4,880 euros. There is no picture!”. He indicates that the administration will correct the return if one of the options is more favorable than the choice of the taxpayer.

The cost calculated with the scale must be deducted from your taxable income, which reduces the tax rate for the withholding tax. To take advantage of it, you must: waive the flat-rate deduction of 10%, capped at 12,829 euros, applied by theFISC administration standard for your professional expenses, when completing your 2022 income tax return for 2021. You must choose to declare your professional expenses at their actual amount, which comes with several restrictions:

  1. First you have to identify all your expenses for your professional activity for the year 2021 (travel, meals, clothing, computer equipment, etc.).
  2. You have to make sure that your expenses are justified and necessary to your professional activity. Obviously, you must be able to provide proof (an invoice, expense report, etc.) of the expense.
  3. Finally you have to list all your costs to put them in a detailed note to your tax returns† You must check whether the total amount of your professional expenses is higher than the amount of the fixed deduction of 10%. Keep in mind that the reimbursements the employer pays for professional expenses must be stated in your tax return, which will increase your taxable income.

To assess the gain achieved, you should use the tables below, where d represents the distance in kilometers between your home and work. Imagine that you own a 6 horsepower vehicle. In assessment year 2021 you drove 23,000 kilometers. The following formula therefore applies: 23,000 x 0.425 = 9,775 euros.

The mileage varies every year. This allows you to calculate the amounts that you must declare on your tax return for the professional use of your vehicle. This scale depends on 2 factors:

  • The number of kilometers driven on a professional basis,
  • The fiscal capacity of the vehicle.

The latest scale, applicable in 2022, has been published:

Scale kilometer allowance applicable to cars (in euros)
administrative power Up to 5000km From 5,001 km to 20,000 km More than 20,000 km
3 CV and less dx 0.502 (dx 0.3) + 1007 dx 0.35
4 HP dx 0.575 (dx 0.323) + 1262 dx 0.387
5 hp dx 0.603 (dx 0.339) + 1320 dx 0.405
6 hp dx 0.631 (dx 0.355) + 1382 dx 0.425
7 CV and more dx 0.661 (dx 0.374) + 1.435 dx 0.446
Scale mileage allowance applicable to motorcycles
fiscal power d <= 3,000 km from 3,001 to 6,000 km d >= 6.001 km
1 or 2 HP dx 0.375 (dx 0.094) + 845 dx 0.234
3, 4, 5 HP dx 0.444 (dx 0.078) + 1099 dx 0.261
> 5 HP dx 0.575 (dx 0.075) + 1502 dx 0.325

The kilometer scale applicable in 2021 is identical to that of 2020, except for electric vehicles, for which an increase of 20% is applied to the calculated amount of travel costs.

The kilometer allowance applies if you have a scooter or moped under 50 cm. controls3† It is this scale that applies in this case:

Scale kilometer allowance applicable to mopeds and scooters (< 50 cm3)
d < or = 3,000 km from 3,001 to 6,000 km d > or = 6001 km
dx 0.299 (dx 0.07) + 458 dx 0.162

How does kilometer charge work?

If you’re an employee, you have three solutions to make your transport-† You can choose the most profitable for you.

  • calculate the amounts to be deducted on the basis of the scales of the administration mentioned here. We’ll talk then actual costs† This scale is intended to cover fuel, repair and insurance costs. Parking and toll fees and interest related to your car loan are subject to a specific deduction, you will be required to provide additional supporting documents.
  • immediately deduct your actual transportation costs by submitting all supporting documents with the date and subject of the expense. But in this case too, the deductible costs, except for parking costs, tolls or interest for your car loan, are maximized by the scale of the administration in function of the distance concerned.
  • Deduct 10% of your taxable income as a lump sum.

In the following tables, d is the distance traveled in kilometers between your home and work. Let’s take the case of a 5 horsepower vehicle that has traveled 10,000 miles in one year. The calculation formula is then as follows: (10,000 x 0.339) + 1,320 = 4,710 euros.

Reimbursement of transport costs by the employer must be declared before the deduction is applied. This kilometer system is therefore favorable for the employee and for the employer, who can pass on the costs in the charges. You can only count one round trip per day. Please note: if your home is more than 40 kilometers from your place of work, the distance taken into account is limited to 80 kilometers per day, except in special circumstances (professional transfer, occupational limitation of the spouse, etc.). The tax authorities give a simulator to estimate his mileage allowance.

If the employer reimburses the employee for costs related to the professional use of his company car, these reimbursements are exempt from: social contributions within the limits of the scale of the tax authorities.

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