Tax policy directorate – Bureau a

Annual individual wages 
Rate applicable
portion less than or equal to €7,721 
4.25%
portion greater than €7,721 and less than or 
equal to €15,547 
8.50%
portion greater than €15,417 and less than or 
equal to €152,279 
13.60%
portion greater than €152,279 
20%
The 2017 Budget Act
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extended the benefit of the wage tax allowance, previously applicable to 
associations governed by the Associations Act of 1 July 1901, to trade unions, groups of trade unions, 
mutual societies with fewer than 30 employees, public interest foundations, cancer organisations, and 
mutual societies governed by Book III of the Mutuality Code with 30 employees or more. The allowance 
is €20,304. 
The legal entities eligible for this allowance receive a wage tax credit based on the remuneration (up to 
a certain limit) that they pay to their employees over a calendar year. 
Lastly, the Budget Bill for 2017
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created a tax exemption on salaries for inbound assignees 
(“impatriates”) hired by a company established in France and who began their assignment in France on 
or after 6 July 2016. A portion of remuneration related to their assignment in France is exempt from 
income tax. 
Taxpayers pay the tax voluntarily on a monthly, quarterly or annual basis
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. An annual summary return 
must be filed at the latest on 15 January of the following year so that the amount of tax due can be 
adjusted.
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Taxpayers whose annual wage tax bill does not exceed €1,200 or the amount of relief are 
not required to file a return. 
The wage tax is deductible from the base of the tax on profits (personal income tax or corporation tax). 
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Article 88 of the 2017 Budget Act no. 2016-1917 of 29 December 2016. 
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Article 71 of the 2017 Budget Act no. 2016-1917 of 29 December 2016. For the income tax exemption for 
“impatriates”, see above.
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Decree 2121-1464 of 26 December 2012 adjusted the declaration threshold for companies subject to the 
wage tax from €1,000 to €4,000 for the annual declaration and from €4,000 to €10,000 for the quarterly declaration. 
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Where employers liable to the wage tax make an annual payment, the return (which is the only reporting 
obligation) is accompanied by the total amount of tax due. 

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