On 17 June 2015, the Ministries of Finances and Budget declared that a withholding tax system for fringe benefits will be introduced in France and will come into effect from 1 January 2018.
It is expected that the withholding tax will be processed through payroll procedures which will require French companies to put in place processes for tracking and determining the tax treatment of fringe benefits as they currently do for social security purposes. Despite the introduction of the withholding system, the income tax return system that is currently in place will not change. Therefore there will still be a tax return filing requirement even where all taxes due are collected via payroll.
