The global solution for payroll professionals, combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come...
Sept. 30—Expatriate employees sent to France would receive three additional years of tax benefits while their employers would pay less payroll-related taxes under a proposed budget submitted by the French government to parliament Sept. 28.
Expatriate employees seconded to France for a limited amount of time by non-French employers currently may receive income tax exemptions for up to five years on certain wages and benefits in a system known “the impatriate regime.”
The benefit allows for remuneration received outside of France by the expatriate as well as “expatriate bonuses” or overseas living allowances related to living in France to be income tax free for the employee.
The budget proposes extending the period of time for receiving the tax free benefits to eight years from five years while also making the same tax free amounts that the employee receives to be exempt from payroll taxes in instances where the expatriate employee has arrived on or after July 6, 2016.
The budget also proposes new income tax thresholds to account for inflation.
• The first income tax bracket's threshold would increase to 9,710 euros (10,912) from 9,700 ($10,901) euros and maintain a 14 percent tax rate.
• The second income tax bracket's threshold would increase to 26,818 euros ($30,139) from 26,791 ($30,110) euros and maintain a 30 percent tax rate.
• The third income tax bracket's threshold would increase to 71,898 euros ($80,805) from 71,826 euros ($80,724) and maintain a 30 percent tax rate.
• The fourth income tax bracket's threshold would increase to 152,260 euros ($171,123) from 152,108 euros ($170,952) and maintain a 41 percent tax rate, with all amounts greater than the new threshold maintaining a 45 percent tax rate.
Parliament must approve the proposed budget for the proposals to take effect.
To contact the reporter on this story: Jared Mondschein at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Baer at email@example.com
Budget documents can be found in French at http://www.economie.gouv.fr/files/files/PDF/plf2017-principales_mesures_fiscales.pdf and http://www.performance-publique.budget.gouv.fr/sites/performance_publique/files/files/documents/actualites/PLF2017/PLF2017.pdf.
More information on payroll issues in France can be found in the France country primer.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)