SHARE
COPY LINK
For members

WORKING IN FRANCE

France extends work-from-home tax breaks

The French government has renewed several measures aimed at people who have been working from home over the past two years.

France extends work-from-home tax breaks
Photo: Paico Oficial / Unsplash

In 2020 and 2021, many people who hadn’t previously worked from home began to do so, as for large parts of those two years it was either compulsory or recommended. 

And if you incurred extra expenses during this time, there are a number of tax breaks and allowances that can be claimed when you come to do your tax declaration in April.

READ ALSO Who has to make a tax declaration in France?

Measures were introduced last year to help cover certain costs – such as:

  • communication costs (internet subscriptions etc.);
  • supplies and printed matter (ink cartridges, paper etc);
  • costs related to the use of private premises (electricity, water, heating etc);
  • travel expenses between home and place of work, with justification of the need for travel between home and place of work;
  • mobile phone costs (subscription, communication and mobile phone acquisition costs);
  • purchase of furniture and computer equipment for the needs of the professional activity.

These allowances have been rolled over for employees who worked from home in 2021, and who will soon declare their 2021 income for tax purposes.

The allowances paid by the employer to cover the costs of working from home, which may take the form of lump-sum reimbursements or even reimbursement of actual expenses, are exempt from income tax, up to a maximum of €2.50 per day, €55 per month and €580 per year.

The deduction of professional work-from-home expenses is different, depending on whether an employee opts for the actual costs and whether an allowance covering the costs of teleworking is already paid by the employer.

For those who have incurred such costs but who have not received any allowance from their employer, a fixed 10 percent abatement is calculated on salaries listed on income tax declarations.

If you choose to deduct actual expenses, you can deduct all professional expenses (related to home-working or not) from your income tax, but you must be able to justify them.

Those who work from home part of the week can also benefit from the allowance up to a maximum of €10 a month for one day a week’s teleworking, and €20 per month for two days.

When you receive an allowance for remote-work expenses, it is presumed to be used in accordance with its purpose up to €10 per month for an employee performing one day of remote-work from home per week. This flat-rate allowance increases to €20 per month for an employee remote-working two days per week.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

UKRAINE

France to build new floating terminal to ensure gas supplies this winter

The French government aims to have its natural gas storage reserves at full capacity by autumn, with European countries bracing for supply cuts from major supplier Russia as the Ukraine war continues, Prime Minister Elisabeth Borne said on Thursday

France to build new floating terminal to ensure gas supplies this winter

“We are ensuring the complete filling of our storage capacities, aiming to be close to 100 percent by early autumn,” and France will also build a new floating methane terminal to receive more energy supplies by ship, Borne said.

France is much less dependant on Russian gas than its neighbours, and announced earlier this week that it has not received any Russian gas by pipeline since June 15th.

Meanwhile Germany moved closer to rationing natural gas on Thursday as it raised the alert level under an emergency plan after Russia slashed supplies to the country.

“Gas is now a scarce commodity in Germany,” Economy Minister Robert Habeck told reporters at a press conference.

French PM Borne on Thursday also confirmed that the bouclier tarifaire (price shield) will remain in pace until the end of 2022 – this freezes the price of household gas and limits rises in electricity bills for homes to four percent.

SHOW COMMENTS