YOU POST OR EMPLOY STAFF RESIDENT IN FRANCE:
are you liable to wage withholding tax ?
All companies that pay wages taxable in France must carry out a wage witholding tax and pay it on a monthly basis to the tax services in accordance with the conditions to be determined according to the place of tax residence of the employee and the place of his liability for social security contributions.
WHAT IS A WITHHOLDING INCOME TAX?
The withholding income tax concerns the tax residents in France. Its objective is to eliminate the one-year lag between the collection and payment of income tax.
WHEN DOES IT COME INTO FORCE?
On January 1st 2019.
DO YOU NEED A SEPA BANK ACCOUNT?
The payment of the withholding income tax is carried out by means of a SEPA bank account. Transfers or other means of payment are not accepted for wage withholding tax. Employers established abroad paying wage withholding tax in France must therefore have a SEPA zone bank account.
DO YOU NEED A FISCAL REPRESENTATIVE?
Yes, in case you are not a permanent establishment:
- in France ;
- in a Member State of the EU ;
- in a country of the European Economic Area (EEA) which has concluded an administrative assistance agreement with France in the context to combinating fraud and tax evasion and a mutual assistance agreement on tax recovery (Iceland and Norway).
The tax representative undertakes to carry out, on your behalf, the formalities concerning the wage withholding tax and, if necessary, to pay on your behalf.
Attention, you cannot have several tax representatives at the same time (example one for VAT and another for withholding income tax). It is therefore the same tax representative who will carry out your levy obligations at source but also those relating to other taxes and taxes you are liable for.
If you are established in a Member State of the European Union in Iceland or Norway, you may appoint an agent who will make the formalities on your behalf and under your responsability.
WHAT CAN WE DO FOR YOU?
TO ENSURE THE ROLE OF CERTIFIED TAX REPRESENTATIVE of companies established outside the European Union (EU). We also act as tax agent for companies established in the EU ;
VALIDATE THE PROCEDURE TO BE FOLLOWED according to the place of the tax residence of the employees and the place of their subjection to social security in France of in their country of origin ;
WORK IN COORDINATION WITH THE ACCOUNTING FIRM responsible for the preparation of payrolls and registered social declarations of your employees posted of employed in France for the declaration of the witthholding income tax ;
PUT AT YOUR DISPOSAL A DEDICATED SEPA BANK ACCOUNT to have their tax withheld at source by the French tax administration.Learn more
Do not hesitate to contact us for any assistance !