Your company sends workers to France for a period longer than 183 days per year
The posting of workers allows companies to send their employees to France but continue to pay the social contributions for these employees in their home country.
But when the duration of posting is longer than 183 days per year, the employees become taxable on their revenues in France.
From January 2019 onwards, the French tax administration has put in place a new system, called “prélèvement à la source” which permits them to direct debit taxes on revenues directly from the bank account of the employer. Thus, your company is responsible for the calculation and filing of taxes on revenues of your employees to the French tax administration.
To do so, your company needs to undergo the following procedure:
- Register as foreign company without fixed establishment in France with the competent tax office,
- Calculate the amount of taxes due for your employees,
- Deduct this amount from the wages of each of your employees and mention it on their salary recap document,
- File the amount through the PASRAU procedure (Prélèvement à la source pour les Revenus Autres) in France,
- Pay the calculated amount to the French tax administration, preferably by direct debit
You should keep in mind that the companies established outside the European Union must nominate a fiscal representative in France, accredited by the French tax administration.
The fiscal representative is responsible for fulfilling these obligations towards the French tax administration, guaranteeing by his personal means that the taxes will be paid to the French tax administration.
Remark: companies already working with a fiscal representative in France for VAT purposes cannot choose another fiscal representative for the obligations mentioned above. One fiscal representative only per company can be nominated for the whole of their activities for which they are represented in France both in case of posted workers and also other taxes (such as VAT).
Is your company posting workers for longer than 183 days per year?
You’d like to know more about your obligations concerning the taxes on revenues of your employees?
Contact us! Our experts will analyse your current situation free of charge.