On 29/11/2024, the Government Council approved the draft Grand Ducal Regulation (RGD) amending the amended RGD of December 23, 2016, implementing Article 104, paragraph 3 of the amended law of December 4, 1967, concerning income tax relating to taxation of company cars provided by the employer.

 

What does the draft RGD provide for?

Maintenance of the rate of 0.5% or 0.6% (depending on electrical energy consumption) to determine the monthly value of the benefit in kind for registrations of 100% electric vehicles for a further 2 years, i.e. until 31/12/2026.

As a reminder, from 01/01/2025, it was planned that the applicable rate be raised to 1% or 1.2% for 100% electric vehicles.

 

What about other vehicles (hybrids, combustion engines)?

A priori, the reform of the calculation of the benefit in kind for vehicles will continue to apply to all other types of engine, so from 01/01/2025, the rate for calculating the monthly value of the benefit in kind will be increased to 2%.

 

It is important to note that this text has not yet come into force, but we thought opportune to inform you that the reform of benefits in kind for 2025 will not be what was initially expected.

We will keep you informed as soon as the final text comes into force.