Looking to hire in France

Sick leave is set up as a separate policy. A medical certificate is required from the first day of sick leave under this framework, and unused sick leave does not carry over year to year.

Phone, internet, and coworking costs can be reimbursed on a non taxable basis when supported by proper billing documents. Claims should be backed by a tax invoice or monthly bill showing the date, amount, provider, description of the service, employee name where applicable, and any VAT amount.

Laptops, office equipment and supplies, software subscriptions, and postal charges can be reimbursed as non taxable when they are business related and supported by a tax invoice. Invoices should clearly show the date, amount, merchant or service provider, description of the item or service, employee name where required, and VAT details when incurred in France.

Most business travel costs, including insurance, visas, accommodation, flights, local transport, fuel, and parking, can be reimbursed on a non taxable basis when they relate to business travel and are supported by appropriate tickets, invoices, or receipts. Some items, such as public transport passes and car rental, have specific conditions that determine whether the reimbursement is treated as taxable or non taxable.

Everyday meals, groceries, and client entertainment can be reimbursed as non taxable when they are business related and supported by receipts or transaction details. For client or partner meals, the claim should also record who attended and, where applicable, the VAT amount.

Training, courses, books, promotional items, and certain gifts can be reimbursed on a non taxable basis when they are clearly business related and properly documented with a tax invoice. The tax treatment of gifts depends on whether the employee is giving the gift in a business context or receiving it personally from the client.

Under EU rules, employers must reimburse protective screen eyewear and related eye exams when a medical exam or health and safety assessment confirms the need due to screen work. These reimbursements are non taxable, subject to an annual limit where no pre-approval is required.

Contractual and discretionary bonuses, including incentives and commissions, are taxed as regular income and attract the usual social security contributions. France applies progressive tax rates and withholds tax at source, so the withholding rate in any pay period that includes a bonus may be higher than in a regular month.

Mileage reimbursements for business use of a personal car depend on the distance driven in the year and the engine power of the vehicle. Employees must provide the car registration showing engine power and a clear calculation of the reimbursable business kilometers.

A range of cash allowances can be offered at the employer’s discretion to selected employees, but these are treated as taxable income. They are submitted manually in payroll as allowances rather than as tax-free expense reimbursements.