France Tax-free allowances

When an employee incurs costs while working from home, they are entitled to a tax-free allowance which varies depending on how many days they work from home a week. The flat-rate allowance paid by the employer will be deemed to be used in accordance with its purpose and exempt from contributions and social security contributions up to €10.40 per day of teleworking per week. In the event of a fixed allowance per day: €2.60 per day of teleworking, up to €57.20 per month.

If the fixed-rate allowance is specified in the branch collective agreement, professional or inter-professional agreement, or a group agreement, it is considered to be utilized for its intended purpose and is exempt from contributions and social charges within the prescribed limits outlined in the collective agreement. This exemption applies as long as the allowance is distributed based on the actual number of teleworking days.

However, if the amount disbursed by the employer surpasses these limits, an exemption from social charges may be granted, contingent upon the ability of the employee to substantiate the professional expenses incurred.

Fixed Costs

For fixed costs such as rent, housing tax, land tax, regional/departmental/municipal tax, condominium fees, or multi-risk home insurance, the share of all the costs incurred is multiplied by the surface area of the home dedicated to working divided by the total surface area of the home. For example, if the total costs incurred amounts to €420, and the employee uses 10m² of his 70m² home for work, the calculation is 420 x 10 / 70 = €60. So €60 is the amount the employer can reimburse the employee tax-free.

Variable Costs

For variable costs such as heating, air conditioning, or electricity, the share of the actual costs incurred is multiplied by the surface area of the part of the home used for working (for this calculation the total surface area of the home is not used).

Other Costs

• Consumables such as printer ink and reams of paper can be reimbursed tax-free on proof of expenses incurred;

• Telephone and internet costs can be reimbursed tax-free with proof of expenses incurred;

• An employee acquiring furniture on behalf of the company to be used and kept by themselves can be reimbursed up to 50% if supporting documents can be given;

• Costs relating to adapting or modifying the working area (for example, installing electrical sockets) can be reimbursed tax-free with proof of an invoice;

• An employee purchasing computer equipment and peripherals (such as a printer) on behalf of the company to be used and kept by themselves can be reimbursed up to 50% if supporting documents can be given.