For company cars registered from 1 January 2025 onwards and for which no contract is signed before 31 December 2024, the flat-rate system of the benefit in kind will be simplified.
Currently, the benefit in kind is taxed at a flat rate of 0.5% (for consumption ≤ 18 kWh/100km) and 0.6% (for consumption > 18 kWh/100km) for electric vehicles, and at a flat rate of between 0.8% and 1.8% for internal combustion vehicles.
From 1 January 2025, the benefit in kind will be taxed at a flat rate of 1% (for consumption ≤ 18 kWh/100km) to 1.2% (for consumption > 18 kWh/100km) for 100% electric cars, and 2% for other types of combustion engine. The aim is to encourage employees to opt for a company car with zero CO2 emissions.
View the document from the Ministry of Mobility and Public Works: Avantage en nature 2022.pdf
For more information on benefit in kind regulation: legilux.public.lu
