Company car tax: CO2-based scale and tax no longer deductible from corporate tax

Article 14 of the 2006 Finance Act rewrites Article 1010 of the General Tax Code: the company car tax applies to passenger cars that companies use in France or own and register there. For EC type-approved vehicles first registered from 1 June 2004 and not held by the company before 1 January 2006, the rate depends on carbon dioxide emissions per kilometre; for other vehicles, it depends on fiscal horsepower. The tax is no longer deductible for corporate tax. Article 15 provides for payment by return and collection under turnover tax rules. These provisions apply to tax periods beginning on or after 1 October 2005; the same Act abolishes the companies' differential motor vehicle tax from the period beginning 1 December 2006.