New Tax Credit Declaration Requirements for Home-Based Employment in France’s 2025 Finance Act
Important Update for Employers and Individual Taxpayers
The 2025 Finance Act (Loi de Finances 2025) introduces significant changes to the declaration requirements for tax credits related to home-based employment in France. Our firm’s tax experts have analyzed these new provisions to help you understand their impact on your tax obligations.
Key Changes in the Declaration Process
Effective January 1, 2025, taxpayers who claim the tax credit for employing household staff or home-based employees will face new declaration requirements. These changes aim to improve transparency and reduce fraud in the tax credit system.
Under the new provisions, taxpayers must now provide more detailed information about their home-based employees, including:
- Complete identification details of service providers
- Specific nature of services rendered
- Documentation of actual payments made
Impact on Individual Taxpayers
For individual taxpayers who employ domestic staff, nannies, or other home-based service providers, these changes mean additional record-keeping requirements. You will need to maintain comprehensive documentation of all employment arrangements and payments to support your tax credit claims.
Compliance Recommendations
To ensure compliance with these new requirements, our firm recommends:
- Implementing a systematic record-keeping process for all home-based employment arrangements
- Collecting and preserving all necessary identification information from service providers
- Maintaining detailed logs of services performed and payments made
- Consulting with a tax professional to verify your documentation meets the new standards
If you have any question, please feel free to contact us and check our website: https://www.serviceonnewgrounds.com
References
- Editions Francis Lefebvre (2025) : https://www.efl.fr/actualite/loi-finances-2025-nouvelle-obligation-declarative-credit-impot-emploi-salarie-domicile_fb7eeaa87-c2e6-47c9-a4de-e79a2a468847
- Ouest France (2025) : https://www.ouest-france.fr/economie/budget/impots-2025-la-nouvelle-obligation-a-ne-pas-oublier-pour-beneficier-de-cet-avantage-fiscal-1f06853a-f2a5-11ef-9be7-6838023416ef
