Looking to hire in France

In France, employees must submit, and clients must approve, expenses within the same calendar year in which they are incurred. Prior year expenses are not accepted under any circumstances.

Every expense type in France has specific documentation requirements. If an expense is submitted without the required documents or details, it will be treated as taxable income rather than a tax-free reimbursement.

Phone and internet subscriptions and coworking space costs can be reimbursed on a non taxable basis when properly documented. A tax invoice or detailed bill is required, and it must clearly identify the service, the provider, the employee, and any VAT where applicable.

Business equipment and supplies such as laptops, office equipment, office supplies, software subscriptions, and postal charges are generally non taxable when purchased for business-related purposes and supported by a tax invoice. In many cases, VAT details are required when the expense is incurred in France.

Most business travel costs in France, including insurance, visas, accommodation, flights, local transport, fuel, and parking or tolls, can be reimbursed on a non taxable basis when they are clearly business-related and backed by appropriate tickets, receipts, or tax invoices. Some items, such as public transport passes and car rental, have specific conditions that affect their tax treatment.

Everyday meals, groceries, and client entertainment can be reimbursed as non taxable when they are business-related and supported by receipts or tax invoices. For client or partner meals, the claim must also identify who attended.

Training, courses, books, promotional items, and certain gifts can also be reimbursed. Their tax treatment depends on the business purpose and who ultimately receives the benefit.

Under EU Directive 90/270/EEC, employers in France must reimburse employees for protective screen eyewear and eye exams when required due to work with display screens. These reimbursements are non taxable, provided there is medical certification of need and the costs fall within the specified annual limit.

In France, bonuses such as contractual or discretionary payments, incentive payments, and commissions are taxed as regular income and are subject to social security contributions. Because France uses progressive tax rates with withholding at source, the withholding rate in any pay period that includes a bonus may be higher than in periods without a bonus.

Mileage reimbursements in France depend on both the total distance driven in the year and the engine power of the car. To support a mileage claim, employees must provide the car registration showing the engine power and the detailed mileage calculations.

French employers can offer a range of discretionary allowances, such as benefits linked to remote work, transport, health, and lifestyle. All of these listed allowances are optional, may be granted to one or more employees at the employer’s discretion, and are treated as taxable income. They are submitted manually as allowances and do not require supporting documentation.