TLDR: Employees tax-resident in France must declare all employment income in France, including earnings from remote work. They can deduct professional expenses either through a flat-rate deduction or by declaring actual costs, provided they are documented and justified. In the absence of international tax treaties, salary is taxed in France if the worker is tax-resident in the country.
Income declaration
Employees tax-resident in France must declare all employment income, including earnings from remote work, following the rules for traitements et salaires (Article 83 of the French Tax Code, CGI).
Deduction of professional expenses
Remote workers can deduct professional expenses incurred for work purposes. Deductions can be made in two ways:
- Flat-rate deduction: applied automatically without the need for supporting documents.
- Actual costs: requires documentation of expenses and proof of their necessity for professional activity.
Taxation of stock option gains
Gains from stock options are taxed in France only for the portion corresponding to work performed in the country, unless tax treaties provide otherwise.
Absence of international tax treaties
In the absence of international tax treaties, the salary of a remote worker is taxed in France if the employee is tax-resident in the country (Article 4 B of the CGI). Tax residency is determined based on the primary place of work.
Employer obligations
Employers must assign each employee to the establishment (business location) that would have been responsible in the absence of remote work, in accordance with the interprofessional agreement of July 11, 2005.
Expense documentation
For the deduction of actual costs, it is essential to specify the division of work between the home and the business location if work is performed in both places. Expenses must be documented and justified.