Training tax: french employer, artist with an E101 form
Thursday, 31 May 2007
“We regularly hire artists who are community nationals. When they supply an E101 form, we are not required to pay URSSAF, Audiens and unemployment benefit contributions; do we nonetheless have to pay the taxe d’apprentissage (tax paid by businesses to fund training programmes)?”
The taxe d’apprentissage is due by firms and other legal persons (associations for instance) that are liable for income or corporate income tax. Article 225 of the [French] general tax code lays down the principle whereby the basis for the taxe d’apprentissage is the same as that of social security contributions.
When a French employer engages an artist who is a community national and can produce an E101 form, he is indeed not required to register the artist for French social security, unemployment benefit and private pension.
Since the basis for the taxe d’apprentissage is the same as that of social security contributions, the rules set out in the social security code apply. Therefore, when the employer is exempted from paying social contributions in France, the wages paid to the foreign artist are not liable for taxe d’apprentissage.
In your case, if the artist can produce an E101 form, you are not therefore required to pay the taxe d’apprentissage.
