Expenses are cost paid by the employee will performing his duties to the employer.
Reimbursement of actual invoices
If the employer reimburses the actual invoice of an expense (not a lump sum), the reimbursement is free of charge and income tax.
In order to prove the exoneration of contributions and taxes, the employee and the employer must provide the invoice to the auditor.
Lump sum reimbursement
The lump sums paid to the employee, by the employer, as reimbursement of professional expenses are free of the social contributions. However, this exoneration is limited.
Lump sum lunch expenses:
Lunch in a restaurant = 18,30€
Lunch outside of the work place but not in a restaurant = 8,90€
Lunch in the work place = 6,30€
Lump sum mobility expenses:
Temporary housing expenses = 72,60€ per day (limited to 9 months)
Moving in a new housing = 1 454,60€ + 121,20€ per child (limited to 1 818,20€)
Lump sum for large travel in France:
Lump sum for travel abroad:
The exoneration limit for lump sum expenses when an employee travel abroad is still the value of the Groupe 1 of the indemnity paid to state employee. The amount can be find on the following web site: http://www.economie.gouv.fr/dgfip/mission_taux_chancellerie/frais
Lump sum for mileage indemnity:
When an employee uses his personal car for professional purposes, the employer can reimburse a lump sum as an expense. This reimbursement is free of charge to the following limits:
|Fiscal power||Up to 5 000 km||From 5 001 to 20 000 km||Over 20 000 km|
|3 CV and less||d x 0,41||(d x 0,245) + 824||d x 0,286|
|4 CV||d x 0,493||(d x 0,277) + 1 082||d x 0,332|
|5 CV||d x 0,543||(d x 0,3053) + 1 188||d x 0,364|
|6 CV||d x 0,568||(d x 0,32) + 1 244||d x 0,382|
|7 CV and more||d x 0,595||(d x 0,337) + 1 288||d x 0,401|
|d is the distance in kilometer of the professional use of a personal car.|
|d ≤ 2 000 km||2 000 km < d ≤ 5 000 km||d > 5 000 km|
|P ≤ 50 cm 3||d x 0,269||(d x 0,063) + 412||d x 0,146|
|d = milleage ; P = power|
|d ≤ 3 000 km||3 000 km < d ≤ 6 000 km||d > 6 000 km|
|P = 1 or 2 CV||d x 0,338||(d x 0,084) + 760||d x 0,211|
|P = 3, 4 or 5 CV||d x 0,4||(d x 0,070) + 989||d x 0,235|
|P > 5 CV||d x 0,518||(d x 0,067) + 1 351||d x 0,292|
|d = mileage ; P = power|
Telephone and internet connection
The employer can reimburse up to 50% of the invoices of the personal phone and internet connection of the employee if they are used for professional end personal purposes. If the reimbursement exceeds that percentage the excess amount will be taxable.
A company can always reimburse more than the exoneration limit. In this case the reimbursement will be subject to social contribution and income tax.
Whatever a company wishes, FPExpert recommend strongly that the reimbursement policy be a written one. If written in French and in compliance with the law, this policy will be opposable to the employee in court.
All voucher and calculation method of the expenses must be kept by the company at least 4 years in case of audit.
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