When an employee uses a company car for private purposes, it results in a taxable benefit in kind known as “Avantage de Toute Nature” (ATN). The ATN is subject to taxation but not social security contributions. Employers pay a contribution based on CO2 emissions.
The calculation of the ATN depends on the catalog price and the age of the vehicle, along with the CO2 coefficient. A higher catalog price and higher CO2 emissions relative to the reference coefficient lead to a higher ATN. Conversely, an older vehicle results in a lower ATN.
The ATN often increases due to the reduction of the reference CO2 coefficient associated with the growing adoption of environmentally friendly company cars. Typically, the ATN ranges between €200 and €300 per month. The employee pays taxes on the ATN, roughly equivalent to about half of the ATN.
On the payslip, the ATN is added to the taxable amount, which may result in a higher tax deduction. However, as the ATN is considered a benefit in kind, it is subsequently subtracted from the taxable amount, affecting the employee’s net pay only through the tax on the ATN. For example, with a monthly ATN of €249.39, the employee will pay approximately half of this amount in additional taxes, resulting in a net reduction of €102.83 in their salary.
In summary, the use of a company car for private purposes can impact an employee’s salary due to the ATN, but this depends on various factors such as the car’s value and its CO2 emissions.