TLDR: The annual tax for posted workers in France is payable by employers of foreign labor. It is calculated on the gross monthly salary, up to a limit of 2.5 times the gross monthly minimum wage (SMIC), with rates varying depending on the contract duration. The tax is declared according to VAT return rules and has been managed by the DGFiP since 2023.
Who is subject to the tax?
The tax is payable by the employer hiring a foreign worker or hosting a temporarily posted employee by a company not established in France. It applies to the worker's first admission to stay in France for salaried professional activity, seasonal employment, or the hosting of young professionals under bilateral agreements. Private employers for domestic or non-profit family activities are exempt, as are employers of nationals from an EU Member State subject to a transitional regime.
Tax calculation: rates and tax base
The tax is calculated on the worker's gross monthly salary, up to a limit of 2.5 times the gross monthly SMIC. Rates vary depending on the contract duration:
- 55% for contracts lasting 12 months or more,
- €50 per month for seasonal work,
- €72 for young professionals under bilateral agreements.
When and how to declare the tax?
The tax becomes due at the end of the month in which the worker begins their activity in France. The declaration follows VAT return rules and varies according to the employer's tax regime. For example, employers subject to the standard VAT regime must declare the tax via Annex No. 3310 A-SD (CERFA No. 10960) with the VAT return for January or the first quarter of the following year.
Tax management and collection
Since January 1, 2023, tax collection has been transferred from OFII to the DGFiP. The tax is managed under the same procedures, penalties, and guarantees as turnover taxes (VAT).
Tax calculation examples
For a foreign worker hired for 18 months with a gross monthly salary of €2,000, the tax amount is €1,100 (55% of €2,000). For a gross monthly salary of €6,000, the tax amount is €2,402.40 (55% of €4,368, where €4,368 = 2.5 × €1,747.20, the gross monthly SMIC).
Employer obligations
The employer must keep a summary statement of admissions for workers subject to the tax. The declaration and payment of the tax must be made according to the employer's specific tax regime.