Everything You Need to Know About the Apprenticeship Tax
The taxe d’apprentissage is a mandatory contribution that helps fund apprenticeship programs and vocational training in France. Which businesses are required to pay it? How is the amount determined? What are the collection rules? Here’s everything you need to know to stay compliant and optimize your business strategy.
Who Must Pay the Taxe d’Apprentissage?
Businesses subject to income tax (IR) on industrial and commercial profits (BIC) or corporate tax (IS), with at least one establishment in France and at least one employee, are liable for the taxe d’apprentissage. Payments must be made to URSSAF or the MSA (Agricultural Social Security).
The tax applies to:
- Sole proprietorships and individual entrepreneurs,
- Companies,
- Commercial, industrial, or craft businesses,
- Agricultural cooperatives or economic interest groups (GIE).
However, some employers are exempt from this tax:
- Businesses employing one or more apprentices whose taxable base does not exceed six times the minimum monthly wage (SMIC),
- Non-profit organizations exclusively dedicated to education,
- Employer groups composed of farmers or agricultural companies eligible for exemption.
Additional Contribution for Large Companies
Companies with more than 250 employees that do not employ at least 5% apprentices or work-study students must pay an additional apprenticeship contribution (CSA) to URSSAF or MSA.
However, companies employing at least 3% apprentices may be exempt from this additional contribution if their number of apprentices or work-study contracts has increased by at least 10% compared to the previous year.
How Is the Taxe d’Apprentissage Calculated?
The taxe d’apprentissage and the additional apprenticeship contribution (CSA) are based on payroll, which includes total salaries subject to social security contributions, as well as benefits such as bonuses, allowances, and other perks.
Taxe d’Apprentissage Rate
The tax rate is set at 0.68% of payroll, divided into two parts:
- Main contribution (0.59%): Funds apprenticeship programs,
- Remaining balance (0.09%): Covers employer-initiated expenses.
A special rate of 0.44% applies in Alsace-Moselle.
What Expenses Can Be Deducted?
Some expenses can be deducted from the main taxe d’apprentissage contribution, including:
- Investments in equipment and materials for training apprentices at a company-owned training center (CFA),
- Payments supporting new apprenticeship training programs at CFAs when these programs are used to train company apprentices.
The total deductible amount is capped at 10% of the previous year’s main contribution.
From the balance portion of the tax, employers can deduct:
- Donations of equipment and materials to apprenticeship training centers (CFAs),
- Work-study tax credits for companies with at least 250 employees that surpass the 5% apprenticeship threshold.
How to Declare and Pay the Taxe d’Apprentissage
Payment of the Main Contribution
The main contribution must be declared monthly via the social security declaration (DSN) submitted to URSSAF. The declaration deadline depends on company size:
- By the 5th of the month for companies with 50 or more employees that pay salaries in the same month as work performed,
- By the 15th of the month for all other cases (companies with delayed payroll or fewer than 50 employees).
Payment of the Remaining Balance
The remaining balance must be declared annually via URSSAF by May 5 or May 15 of the following year, based on the previous year’s payroll.
How to Allocate the Remaining Balance
After declaring the taxe d’apprentissage in DSN, employers must use the SOLTéA platform to allocate all or part of the balance to one or more eligible institutions by September.
Employers can distribute the funds at three levels:
- Specific institutions,
- Sub-divisions of institutions,
- Specific training programs.
Additional Apprenticeship Contribution (CSA)
The CSA applies to companies with over 250 employees that do not meet the 5% apprenticeship employment threshold.
Exemptions
Companies can be exempt if they:
- Have at least 3% of employees in apprenticeship or work-study contracts,
- Increased their number of apprentices by 10% compared to the previous year.
CSA Rates
The CSA is declared annually via DSN in March and is due by April 5 or April 15 of the following year.
The rate depends on the percentage of apprentices in the workforce:
Apprenticeship Rate | CSA Rate |
Less than 1% | 0.4% (0.6% for companies with 2,000+ employees) |
1% to less than 2% | 0.2% |
2% to less than 3% | 0.1% |
3% to less than 5% | 0.05% |
More than 5% | Exempt |
Reduced CSA Rates in Alsace-Moselle
Companies in Alsace-Moselle benefit from lower CSA rates:
Apprenticeship Rate | CSA Rate (Alsace-Moselle) |
Less than 1% | 0.208% (0.312% for 2,000+ employees) |
1% to less than 2% | 0.104% |
2% to less than 3% | 0.052% |
3% to less than 5% | 0.026% |
More than 5% | Exempt |
By understanding the taxe d’apprentissage, businesses can ensure compliance while making informed financial decisions about tax deductions and allocations.
