Tax credit in favour of apprenticeship

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Fiscal code (introduced on 18th January 2005 Law)

To promote the development of apprenticeship by increasing the number of apprenticeship contracts.

The Ministry of Finance is responsible for the overall management of the instrument and tax authorities for day-to-day operation. CNEFOP is responsible for monitoring/aggregating the data. The Ministry of Labour is also involved in the management of the instrument.

All companies employing apprentices for at least one month.

The instrument supports only apprenticeship. It applies to all levels.

State (loss of tax revenue)

The amount of deduction may not exceed the amount of wages of apprentices after deducting subsidies.
The maximum amount that can be deducted is EUR 1,600 per apprentice preparing a diploma at lower secondary school and diploma not exceeding 2 years after the baccalaureate.
In addition, companies can benefit from the apprenticeship credit tax only during the first year of registration of an apprentice.

Any apprenticeship training related costs

In 2014, the loss of tax revenue amounted to EUR 350,000,000.

The total amount of the State's foregone revenue doubled between 2004 and 2014, from EUR 175 million to EUR 350 million. This may be explained by the increasing level of qualification of apprentices - apprenticeship wages vary according to the level of qualification/type of diploma.

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CNEFOP, www.cnefop.fr