Salaries, Wages, and benefits in kind, remuneration of managers and partners, are subject to the income tax scale after deduction of professional expenses.
Professional expenses can, at the choice of the taxpayer, be deducted:
- either as a flat rate,
- or for their real and justified amount.
Note:
Each member of the tax household can choose the method of deduction that is most favorable to him.
For each person, the choice between the standard deduction and the deduction of actual costs must be the same for all the activities taxed according to the mode of wages and salaries.
Payroll tax refers to all taxes paid by employers, employees and the self-employed, as a percentage of wages or as a lump sum per person, which do not give rise to the right to social benefits.
1. Flat-rate deduction of 10%
All employees and partners or managers referred to in article 62 of the CGI who do not request the deduction of actual costs benefit from the flat-rate deduction of 10%. This deduction covers current business expenses.
In return for this deduction, the taxpayer must add to his wages the allowances for professional expenses covered by the flat-rate deduction.
The minimum deduction (for each member of the household) is set for the taxation of income received each calendar year by the finance law.
The maximum deduction is determined by a ceiling set each year by the finance law. See our annual guide for applying the amounts to your next return.
2. Deduction of actual expenses
Employees who have incurred an amount of professional expenses greater than that of the flat-rate deduction of 10% may request to deduct the amount of their actual professional expenses provided that they are justified. For this, they must waive the application of the standard deduction of 10%.