If you do, and if the employees use their company car for personal purposes, this is a benefit in kind. On #frenchpayroll benefits in kind are subject to social contributions. They must appear on the pay slips.
When the car is leased, the value of the benefit can be calculated in 2 ways:
If the personal gasoline expenses are paid by the employee, the monthly value of the benefit in kind is 30% of the monthly cost of the lease including the lease, the maintenance and the insurance.
If the personal gasoline expenses are paid by the company, the monthly value of the benefit in kind is 40% of the monthly cost of the lease including the lease, the maintenance, the insurance and the gasoline expenses.
The annual value of the benefit in kind is calculated with this formula:
[Global cost (lease + maintenance + insurance) * kilometer driven for personal purposes/total kilometers driven over the year] + personal gasoline expenses paid by the employer.
The company chooses the way by which the benefit in kind is calculated. This choice is a permanent one.
The withholding of income tax (Prélèvement à la source or PAS in French) on the French payroll will be a reality in January 2019.
For foreign company without a fix establishment in France, payroll providers can manage most of the process.
However, payment must be made by the company to the fiscal authorities.
For those of you who don’t know the DGFIP (fiscal authorities), it is not a very forgiving administration unlike the URSSAF (social security) or HUMANIS (retirement).
Don’t forget that you everything must be ready for January’s payroll. And it is not unheard of to have a lot of the administration staff take their Christmas vacation.
French Payroll Expert strongly recommend that you contact the SIEE (DGFIP services for foreign company) as soon as possible to confirm that your account with them is set up with the proper B2B SEPA mandate.
SERVICE IMPOTS DES ENTREPRISES ETRANGERES NOISY-LE-GRAND
Today I went to the #BoostYourNetwork event setup by the Franco-British Chamber of Commerce & Industry (FBCCI) , ABIE France and NetworkIrlande France in Grant-Thornton France‘s office at Neuilly.
If you know speed dating, this is the same with networking.
It was my first try. I rather enjoyed it.
Not only did I have the opportunity to meet new people such as Hubert Levesque from Morgan McKinley , Frédéric Brard from Bloody Mary and Harrie Barron from Softools .
But I also meet some of my usual accomplice in such events, Anne-Cécile Bourget-Davron from Davron Translations , Thibault Vanham ◆ Bessé Ressources from Bessé , Frederic Calinaud from Calinaud David Avocats.
I hope you can join us for the next event.