Income Tax 2025: Flat Rate vs. Actual Expense Deduction (new)

Verified on June 6, 2024 – Legal and Administrative Information Directorate (Prime Minister)

Income Tax 2025: How the Flat Rate Deduction Works for Professional Expenses

As of January 1, 2025, the 2025 Finance Bill has not yet been enacted. According to Law No. 2024-1188 of December 20, 2024, the government has the authority to continue collecting taxes at current rates until the new Finance Law is passed. Updates to this page will be made once the 2025 Finance Law is officially published.

Flat Rate Deduction 2025: Simplifying Professional Expense Deductions

If you’re considering this deductions for your professional expenses, you have the option to reduce your taxable salary by 10%. This flat-rate deduction is a straightforward and hassle-free way to account for your work-related expenses, making it easier to file your income tax.

How it works ?

The deduction is automatically applied to your salary, reducing your taxable income by 10%. This deduction accounts for common professional expenses such as:

  • Commuting costs between home and work
  • Meals during work hours
  • Personal documentation that your employer doesn’t provide

Flat Rate Deduction Limits for 2025

The deduction allows a minimum amount of €495 for each member of the household, with a maximum amount of €14,171. These amounts vary depending on the number of dependents and household members.

Exemptions and Additional Considerations for it

In addition to standard work-related expenses, certain allowances are exempt from taxation, such as:

  • Telework reimbursements up to €2.60 per day (€57.20 per month) for home-office expenses incurred during 2023.

These amounts, however, should be considered when calculating your total professional expenses for tax purposes.

How to Apply for the Flat Rate 2025 Deduction

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