10% Flat-Rate Deduction
In France, employees can opt for a 10% flat-rate deduction to apply to the professional expenses they have incurred. The deduction covers common professional expenses, such as commute expenses and meal expenses at the workplace. This flat-rate deduction of 10% is automatically deducted from the employee’s salary.
Each employee has the option to individually waive the flat-rate deduction and, under specific conditions, opt to deduct their actual expenses instead. However, the 10% deduction and the deduction for actual expenses cannot be claimed simultaneously.
For each employee, the amount of the 10% deduction is:
- at least €495 unless the declared remuneration is less than this amount;
- at most, at €14,171.
Exceptions where contributions are exempt include:
- Commute allowances for construction workers
- Employer contributions to travel card costs
- €4 travel allowance introduced by the order of 28 September 1948
- Employer’s contribution to meal vouchers (between 50-60%, with a maximum of €7.18 for 2024)
- Employee travel expenses reimbursed by the employer
When an employee opts for the 10% deduction, the allowances or reimbursements the employer provides are tax free, if the following conditions are fulfilled:
- The expenses have a professional character;
- correspond to actual expenses;
- can be justified;
- are specific.