Withholding tax
Representation / Tax Agent
Accounting firms, payroll service providers, contact us to bring your clients into compliance with withholding tax (WHT):
🗹 Regularisation of the PAS (name of the FR income WHT) provided by FISCALEAD
🗹 Filing of the PASRAU declaration on Net-entreprise if you wish (reserved for specific employees which do not pay the usual French social charges but depend on different rules)
Withholding tax ("P.A.S." in French) for employees resident in France for tax purposes
The withholding of the income tax in France ("P.A.S") came into force on January 1, 2019, in accordance withOrder No. 2017-1390 of September 22, 2017. It consists in deducting the tax due to French Tax Authorities from the effective payment of the salary to the employee: the amount of tax is deducted each month from the pay slip. Thus, the payment is spread over twelve months and the traditional one-year time lag that we used to have in France for paying income tax is eliminated. In addition, the tax is automatically adjusted to the amount of income received. By nature, employers of these individuals who are tax residents in France are then liable for the collection and remittance of the P.A.S. to French Tax Authorities
Obligations of foreign companies employing French tax residents
If your company employing a tax resident in France is established abroad, as a matter of principle you are obliged to appoint a tax representative. However, exemptions may apply depending on your country of establishment.
The following are the terms and conditions of FR WHT collection that apply to you:
01.
The foreign company is established in the European Union AND has a SEPA bank account
You are exempt from appointing a tax representative and are therefore able, via your accounting/payroll service provider, to make direct debits from your bank account via your impots.gouv.fr portal.
02.
The foreign company is established in the European Union but does not have a SEPA bank account
This may be the case, for example, if your company is established in a Member State with a currency other than the Euro.
You are then exempted from the obligation to appoint a tax representative, however, as you do not hold a SEPA bank account, it would be impossible to set up a direct debit for the benefit of French Tax authorities. You can therefore appoint FISCALEAD as your fiscal agent for this purpose.
| EU countries outside the Euro zone : | |
|---|---|
| Bulgaria Croatia Denmark Hungary | Poland Czech Republic Romania Sweden |
FISCALEAD sets up your direct debit on the Tax Authorities' portal, and provides you with a third-party SEPA account to enable you to fulfil your P.A.S. obligations. Contact us for a personalised quote adapted to the number of employees subject to the P.A.S.
03.
The foreign company is established outside the European Union
The obligation to appoint a tax representative does not apply either to a debtor established in another Member State of the European Union (see above) or to a debtor established in a third country with which France has a legal instrument on mutual assistance, having a scope similar to that provided for in Council Directive 2010/24/EU of 16 March 2010 on mutual assistance for the recovery of claims relating to taxes, duties and other measures and in Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax.
The list of these States is fixed by order of the Minister responsible for the budget.
In short, if you are established in a non-EU Member State other than :
- Albania
- Australia
- Aruba
- South Africa
- Azerbaijan
- Curaçao
- Republic of Korea
- Georgia
- Ghana
- Greenland
- Faroe Islands
- India
- Iceland
- Japan
- Mauritius
- Mexico
- Moldova
- Norway
- New Zealand
- French Polynesia
-United Kingdom
- Saint Barthelemy
- Saint Martin / Sint Maarten
- Tunisia
- Ukraine
▸ For companies established in the third countries listed above, see points 1 or 2.
You are obliged to appoint a representative such as FISCALEAD
for the purposes of French WHT called "P.A.S.".
Contact us to obtain a personalized quotation adapted to the number of employees subject to the PAS.
We assure you of our response within a maximum of 48 working hours.