France launches public consultation on updates to the annual incentive tax for low-emission light vehicles (TAI). The tax applies to companies with fleets of 100+ vehicles, and authorities will accept 2025 filings until April 2026 without penalties.
France’s tax authority has opened a public consultation on updates to the annual incentive tax for low-emission light vehicles (TAI), reflecting changes introduced by Law No. 2025-127 of 14 February 2025, Finance Law for 2025 on 25 February 2026.
The consultation covers revisions to the definition of passenger vehicles and the application of the TAI, which has applied since 1 March 2025 to companies with fleets of at least 100 taxable vehicles. The tax is designed to encourage the acquisition of low-emission vehicles for economic purposes.
Most provisions common to annual taxes on vehicles used for business purposes, previously outlined in BOI-AIS-MOB-10-30-10, continue to apply. However, the TAI is subject to specific rules detailed in BOI-AIS-MOB-10-30-40. Commentary on the notion of “passenger vehicle” in BOI-AIS-MOB-10-10 has also been updated to reflect the regulatory definitions under Articles D. 421-0 and D. 421-1 of the Code of Taxes on Goods and Services, as amended by Decree No. 2025-749 of 1 August 2025.
Under Article A. 421-49 of the Code, the filing deadline normally falls in January following the tax year. For the 2025 tax, however, authorities will accept filings up to April 2026 without penalties or interest.
The provisions introduced by Article 58 of Law No. 2026-103 of 19 February 2026 Finance Law for 2026 will be addressed after the consultation concludes.
The consultation, open from 25 February to 31 March 2026, invites comments on sections I-A-3-b §65; I-B §§120–150; and I-D §§165–168 of BOI-AIS-MOB-10-10, and BOI-AIS-MOB-10-30-40. Contributions must be signed and sent by email to bureau.d2-dlf@dgfip.finances.gouv.fr. Comments submitted during this period will inform potential revisions.
