Taxation

Annual declaration of settlement and payment of the payroll tax before 15 January

Publié le 09 janvier 2024 - Legal and Administrative Information Directorate (Prime Minister)

Each company must submit an annual declaration of settlement of the payroll tax before 15 January inclusive. Depending on the amount paid by your company last year, you must also pay it on that date. This tax is payable by companies not subject to VAT employing employees.

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Image 1Crédits: Stock 4 You - stock.adobe.com

First of all, the payroll tax is not payable when the annual amount does not exceed €1,200.

The annual declaration of assessment of the payroll tax, sent by teledeclaration (form 2502-SD), includes the amount of items reported in respect of the previous year. It allows the payment and adjustment of the payroll tax. This declaration may be filed by 31 January inclusive.

The amount to be paid by the employer depends on the amount of payroll tax paid in the previous year:

  • if you paid last year less than €4,000 as part of this tax, you must pay the tax before January 15 inclusive. This teleregulation accompanies the annual teledeclaration of the settlement of the payroll tax (form 2502-SD).
  • if you paid last year more than €10,000 for this tax, you must provide 11 installment statements at the rate of one per month. The tax is therefore paid every month, within 15 days of the payment of wages. The first statement of provisional payment must therefore be paid by January 15 inclusive (form 2501-SD).

Please note

If you paid between €4,000 and €10,000 in payroll tax last year, you will need to provide 3 installment statements. The first of these will be to be provided before April 15.

FYI  

In the event of a transfer or cessation of activity, the employer must make the declaration within 60 days of the transfer or cessation of activity and no later than January 15 of the following year.

In the event of the death of the employer, the declaration must be made within 6 months of the death of the employer and no later than January 15 of the following year.

Who is affected by the payroll tax payment?

This tax must be paid by the employer domiciled or established in France, irrespective of the place of residence of the employee or of his activity, fulfilling one of the following conditions:

  • in the year of payment of the remuneration, he shall not be subject to payment of VAT;
  • in the year in which the remuneration was paid, he is partially liable to VAT and was subject in the previous year to VAT on less than 90 % of his turnover.
  • in the year before the payment of the remuneration, less than 10 % of its turnover was subject to VAT.

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