France

Individual - Deductions

Last reviewed - 11 November 2020

Employment expenses

Salaries and other related benefits are taxed after deducting an employee's mandatory social security contributions, except CRDS and part of CSG, and after a standard allowance for professional expenses equal to 10% of taxable employment income (limited to EUR 12,627 on 2019 remuneration). An employee may elect to deduct actual professional expenses incurred instead of the 10% standard deduction; however, in this case, all expenses reimbursed by the employer must be added back to the taxable salary.

Qualifying professional expenses include certain commuting expenses, meals taken while away from home, and professional documentation. Professional advice should be sought before any option is elected to deduct actual expenses since various conditions must be met to ensure deductibility.

Contributions made to foreign social security systems are also deductible for French PIT purposes for taxpayers qualifying under the provisions applicable to inbounds in France as well as for individuals who are seconded under EU regulation no. 8832004 or a social security agreement signed by France.

In addition, deduction of contributions made to foreign complementary health/disability/death and pension funds are allowed for taxpayers qualifying as inbounds under the law applicable to inbounds.

Nevertheless, these funds must comply with specific conditions in order to be tax deductible. We recommend contacting our specialists to determine whether the foreign plan contribution qualifies for tax deductibility.

Also, in accordance with the regime for inbounds (Article 155B of the French Tax Code), the compulsory registration with the French social security system for those who work in France does not apply to the old-age state pension schemes, provided that certain conditions are fulfilled. The exemption is granted once per assignee and is for a limited period of three years, with a possible extension of three years.

Personal deductions

Taxpayers may be entitled to one or more of the tax credits or general deductions shown below:

  • Limited tax credits are available for certain expenses with respect to principal residences, expenses for sustainable development, charitable contributions, domestic employees, students, and child care (see the Other tax credits and incentives section).
  • General deductions are available for child support and alimony payments.

Alimony and child support

Payments of alimony to an ex-spouse, and of child support to children under 18, made according to the provisions of a court settlement, qualify as fully deductible expenses.

Support payments made to parents, grandparents, children over 18, or married children may qualify as a deductible expense (with a cap for children), provided that the beneficiaries are in need and that the need can be demonstrated.

Personal allowances

Total taxable income is divided into the number of shares (‘parts’) that reflects the taxpayer's marital status and the number of dependants. Children under 18 years of age and disabled children of all ages can be claimed as dependants.

Children from the ages of 18 to 21, as well as children from the ages of 21 to 25 who are full-time students, can, upon request, be claimed as dependants.

The tax benefit per additional half-share for dependent children is limited to EUR 1,567 (limit) for each of the first two children and EUR 3,134 for each additional child.