As a reminder, any employer who sponsors a non-EU citizen to work in France or who welcomes an non-EU citizen employee temporarily seconded by a company not established in France, is subject to a tax when the foreign employee first enters France or when he or she is first admitted to France as an employee.
Since January 1st, 2023, this tax is collected by the French tax authority, “DIRECTION GÉNÉRALE DES FINANCES PUBLIQUES (DGFiP)”.
The tax is triggered when the visa for the employment contract is issued or when the work permit is obtained. The amount of the tax is 55% of the gross monthly salary (the monthly salary is capped for this purpose at €4,273.20) for a duration of employment of at least 12 months, it ranges from €74 to €300 if the duration of the employment is 3 to 12 months and is €50 per month of employment in the case of seasonal employment.
The tax becomes due at the end of the month in which the first day of employment in France of the foreign worker or the seconded employee occurs, but payment of the tax is made together with the payment of VAT and other taxes shown on the appendix to the annual VAT return. The first payments for taxes due in 2023 will therefore be made in February 2024. Only employers that cease business will have to file a tax return during 2023.
Should you have any questions, or should you need assistance in this matter, please do not hesitate to contact us.