Expenses reimbursement

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 large travel in France
For lunch
Housing + breakfast : Paris, 92, 93, 94
Housing + breakfast : other county
3 first months
18,30 €
65,30 €
48,50 €
After 3 months up to 2 years (- 15 %)
15,60 €
55,50 €
41,20 €
After 2 years up to 6 years (- 30 %)
12,80 €
45,70 €
34,00 €

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:

Cars

Professional mileage
Fiscal powerUp to 5 000 kmFrom 5 001 to 20 000 kmOver 20 000 km
3 CV and lessd x 0,41(d x 0,245) + 824 d x 0,286
4 CVd x 0,493(d x 0,277) + 1 082 d x 0,332
5 CVd x 0,543(d x 0,3053) + 1 188 d x 0,364
6 CVd x 0,568(d x 0,32) + 1 244 d x 0,382
7 CV and mored x 0,595(d x 0,337) + 1 288d x 0,401
 d is the distance in kilometer of the professional use of a personal car.

Motorcycle

MopedProfessional mileage
d ≤ 2 000 km2 000 km < d ≤ 5 000 kmd > 5 000 km
P ≤ 50 cm 3d x 0,269(d x 0,063) + 412d x 0,146
d = milleage ; P = power
MotorcycleProfessional mileage
d ≤ 3 000 km3 000 km < d ≤ 6 000 kmd > 6 000 km
P = 1 or 2 CVd x 0,338(d x 0,084) + 760d x 0,211
P = 3, 4 or 5 CVd x 0,4(d x 0,070) + 989 d x 0,235
P > 5 CVd x 0,518(d x 0,067) + 1 351d 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.


FPExpert advice

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.


Do not hesitate to contact FPExpert if you need more information, by email to the following address:

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