Income Tax 2025 France – Employee Savings and Exemptions

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Verified on January 1, 2025 – Directorate of Legal and Administrative Information (Prime Minister)

You must declare the amounts received in 2024 through an employee savings scheme in 2025. However, there are exemptions that can benefit employees. Here’s an overview of what you need to know about income tax 2025 in France regarding employee savings and profit-sharing:

Employee Savings Plan

The amounts paid by your employer are exempt from tax within certain limits if they are paid as part of one of the following employee savings plans:

  • PEE: Employee Savings Plan
  • PEI: Intercompany Savings Plan
  • Perco: Collective Retirement Savings Plan
  • PER: Collective Company Retirement Savings Plan

You do not need to declare the exempted amounts from these plans.

The income from securities placed in a PEE (Employee Savings Plan) or PEI (Intercompany Savings Plan) is also exempt from tax if the following two conditions are met:

  • The income is reinvested in the savings plan
  • The holding period of the securities is respected

Note: Amounts paid within the framework of employee savings plans are subject to social contributions at a rate of 17.2%.

Time Savings Account (CET)

You do not need to declare the following amounts:

  • Amounts paid into a Perco (Collective Retirement Savings Plan) corresponding to unused rest days
  • Compensatory payments from a CET corresponding to amounts from profit-sharing and employee participation (after the lock-up period) or from a PEE (Employee Savings Plan)

Profit-Sharing

You do not need to declare your profit-sharing amounts as long as the amounts received are deposited within 15 days of payment into one of the following employee savings plans:

  • PEE: Employee Savings Plan
  • PEI: Intercompany Savings Plan
  • Perco: Collective Retirement Savings Plan
  • PER: Collective Company Retirement Savings Plan

Exemption applies to amounts paid up to €23,184 in 2024 (€35,325 in 2025).

Note: Amounts paid within the framework of employee savings plans are subject to social contributions at a rate of 17.2%.
Amounts that are not exempt should be declared with your salary.

Profit-Sharing Exemption for Income Tax 2025 France

These amounts are exempt provided they are kept locked for a minimum period (typically 5 years).
However, there are authorized cases of early withdrawal.
You do not need to declare the exempted amounts.
Amounts that are not exempt should be declared with your salary.

Need Assistance with Income Tax 2025 France?

At Escec International, we offer specialized services to help businesses and individuals navigate income tax and savings plans, including employee savings, profit-sharing, and other tax-related matters in France. Whether you’re managing your business finances or planning for retirement, our expert accountants and tax consultants are ready to guide you.

How Can We Help?

  • Tax consulting and planning for income tax 2025 France
  • Optimizing your employee savings and tax exemptions
  • Ensuring compliance with tax laws and regulations

Contact Us Today!
For tailored advice and expert services, get in touch with Escec International. Let us assist you in making the most of your employee savings and ensuring your tax filings are accurate and beneficial for the coming year.

Visit www.escec-international.com to learn more or Contact Us for a consultation!