Benefit in kind - Car

Benefit in kind - Car

As part of the integrated national plan for energy and climate , the government introduced in 2022 a series of progressive rates for the evaluation of the car benefit in kind, based on the registration date and the type of engine. The goal for 2025 was to reduce the incentives for the use of company cars. However, in order to support the market for low-emission vehicles, a draft Grand-Ducal regulation has been introduced  to extend the favorable evaluation for these vehicles. Therefore, electric or hydrogen vehicles registered before January 1, 2027, or whose leasing contract is signed before this date and registration occurs before January 1, 2028, would benefit from a monthly evaluation rate of 0.5% or 0.6% of the purchase price (instead of the initially planned 1% or 1.2%). On the other hand, for thermal vehicles registered as from January 1, 2025, and whose contract has not been signed before this date, the evaluation rate will rise to 2%, as initially planned.