Do You Need to Declare Employee Savings Plans on Your Income Tax Return?

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If you received payments in 2024 under an employee savings scheme, you may need to include them in your 2025 income tax return. However, several exemptions apply depending on the type of plan and how the funds are managed.

Employee Savings Plans

Contributions made by your employer can be exempt from income tax, provided they are paid into one of the following approved savings plans:

  • Company Savings Plan (PEE)

  • Intercompany Savings Plan (PEI)

  • Collective Retirement Savings Plan (Perco)

  • Collective Company PER (PER d’entreprise collectif, also known as Pereco or Perecol)

If these conditions are met, you are not required to declare these amounts for income tax purposes.

Additionally, any income earned from investments held in a PEE or PEI is tax-free, as long as:

  • The income is reinvested into the plan, and

  • The required holding period for the assets is respected.

Important: Even if exempt from income tax, these contributions remain subject to social security contributions at a rate of 17.2%.

Time Savings Account (CET)

You do not need to declare the following:

  • Amounts transferred from unused paid leave into a Perco

  • Cash payments from a CET related to profit-sharing or incentive bonuses, once the lock-up period has ended, or from a PEE

Profit-Sharing Bonus (Intéressement)

You are not required to declare your incentive bonus if the following conditions are met:

  • The bonus is paid into a PEE, PEI, Perco, or Pereco within 15 days of payment

  • The total contributions remain under the exemption limit, which is:

    • €23,184 for 2024

    • €35,325 for 2025

As with other forms of employee savings, these amounts are subject to social charges at 17.2%, even when income tax-exempt.

Any non-exempt bonuses must be declared as part of your salary.

Profit-Sharing (Participation)

Profit-sharing bonuses are also tax-exempt, provided they remain locked into a qualifying plan for at least five years.

There are, however, specific circumstances that allow for early withdrawal without tax consequences.

If the conditions for exemption are not met, the funds must be included in your taxable income alongside your wages.