Specific lump-sum deduction for professional expenses: something new!

Profesionnal expenses
The “Bulletin officiel de la Sécurité sociale” changed the conditions of application of the specific fixed deduction for professional expenses

The “Bulletin officiel de la Sécurité sociale” changed the conditions of application of the specific fixed deduction for professional expenses. Last March, the “Direction de la Sécurité sociale” and the Urssaf unveiled the “Bulletin officiel de la Sécurité sociale” (Boss) which can be consulted online at www.boss.gouv.fr.

This documentary database, which is enforceable against the Urssaf, allows employers to obtain information on the regulations relating to the “cotisations sociales” contributions (basis of assessment, exemptions, benefits in kind and professional expenses, etc.).

This online publication was accompanied by the modification of some rules, one of which concerns more particularly the specific fixed deduction for professional expenses applicable to certain professions. Explanations.

Who is concerned?

Certain professions benefit, depending on their social contributions from a specific fixed deduction for professional expenses (DFS) of up to 30% of their remuneration. However, the amount of this deduction is limited to €7,600 per year and per employee.
The professions concerned are those listed in article 5 of appendix 4 of the “Code général des impôt” as it stood on December 31, 2000, and in particular construction workers, sales representatives, merchant aviation personnel, forestry workers, advertising representatives, journalists, certain casino personnel, certain home workers, dramatic artists, and musicians.

What changes?

From now on, the mere fact of exercising one of the concerned professions is no longer sufficient to apply the DFS. Indeed, the Boss now requires that the employee effectually bears costs during his professional activity. A rule which until then had been applied by the courts but not by the Urssaf.

Please note: the employer who applies the DFS must keep supporting documents proving that the employee actually bears such costs.

Therefore, the DFS cannot be applied when the employee does not incur any expenses to carry out his professional activity or when these expenses are fully reimbursed by his employer. The same applies when the employee is on leave or absent from the company (e.g., work stoppage). However, this condition is not required when is provided for in a collective agreement or has been accepted by the social and economic committee.

When obtaining the employee’s consent, the employer must inform the employee of the consequences of the application of the DFS, in particular on the amount of the employee’s retirement pension.

Note: until December 31, 2022, employers who do not comply with these new conditions for applying the DFS will only be subject, in the event of an audit, to a request for compliance for the future. In other words, the Urssaf will not impose any adjustment on them.

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