Training tax: french employer, artist without an E101 form
Thursday, 31 May 2007
“We are liable for the taxe d’apprentissage (tax paid by businesses to fund training programmes) and we hire foreign artists every year (with or without E101 forms). I would like to know whether we have to pay this tax for these artists. As far as I am aware, we only have to pay it for artists not in possession of an E101 form (those for whom we pay social security contributions).”
The taxe d’apprentissage is due by partnerships and single operators whose revenues are liable for tax on business income as well as by firms, organizations and associations liable for corporate income tax.
The territorial scope of the taxe d’apprentissage is the same as that for income tax. Therefore, any employer domiciled in France for tax purposes is liable for the taxe d’apprentissage.
However, 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, subject to exemption of a portion of the wages paid to apprentices.
The tax department specifies that in such cases, the basis for the taxe d'apprentissage is the same as that for social security contributions as stipulated in the social security code. If the employer is exempted from paying welfare contributions, wages paid to the foreign artist are not liable for taxe d'apprentissage.
If a French employer engages a foreign artist who can produce an E101 form, he is not required to register the artist for French social security, unemployment benefit and private pension (See Foreign artist hired by a company based in France: European artist ).
On the other hand, in other cases, the French employer is not exempted from paying welfare contributions. He is liable for the taxe d'apprentissage on the wages paid to artists (European nationals not in possession of an E101 form or artists who are nationals of a non-community country).
