France Update: Sport in business: entry into force of tax exemption measures

ARTICLE 18 OF LAW NO. 2020-1576 OF 14 DECEMBER 2020 ON THE FINANCING OF SOCIAL SECURITY FOR 2021 PROVIDED FOR THE EXCLUSION FROM THE SOCIAL BASE OF BENEFITS RELATING TO THE PRACTICE OF SPORT IN COMPANIES.

Thus, the provision by the employer of sports equipment for collective use and the financing of sports services for its employees are excluded from the basis of assessment of social contributions.

Decree No. 2021-680 of 28 May 2021, which entered into force on 30 May, lays down the conditions for implementation.

 The following fall within the scope of this exemption:

• the advantage represented by the provision by the employer of equipment for collective use dedicated to the realization of physical and sports activities such as a gym belonging to the company or a space managed by it or for which it takes charge of the rental, for the purposes of a practice of physical activity and sports;
• the advantage constituted by the financing by the employer of services of physical and sports activities such as group classes of physical and sports activities, yoga classes, for example, or events or competitions of a sporting nature, within an annual limit equal to 5% of the monthly value of the social security ceiling multiplied by the number of employees of the company, i.e. €171.40/year/employee in 2021 (Articles D. 136-1-1 and D. 136-2 of the Social Security Code).

These benefits must be offered by the employer to all employees of the company regardless of the nature and duration of their employment contract.

We hope that these measures will encourage companies to develop sport in companies.

https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000043548437

By Jean-Baptiste-Guillot and Virginie Molho, France, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact france@transatlanticlaw.com

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