Tax credit for training expenses of entrepreneurs

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Name of the instrument - Local language
Crédit d'impōt pour dépenses de formation des dirigeants d'entreprise
Name of the instrument - English translation
Tax credit for training expenses of entrepreneurs
Scheme ID
88
Country
France
Reporting year
2020
Type of instrument
Tax incentive for companies
Sub-type of instrument
Incentive for promoting training
Type of entry
Single instrument
Short description

All companies can deduct all their training costs from their taxable profits. The amount of deduction is related to the number of hours of training and the hourly minimum wage. The maximum of deductable hours is 40 hours per year, corresponding in 2020 to EUR 406. Above this amount is not deductible. There is no preferential treatment by size or type of training. Eligible types of education may include all types of education and training, provided that they are in accordance with the needs of the company. Eligible costs include tuition fees/fees for participants (external providers), as well as some additional costs.

Level of operation
National
Name of a part of the country
Not applicable
Name of the region (for regional instruments)
Not applicable
Name of the sector (for sectoral instruments)
Not applicable
Relevance
Key instrument
Tax law, Code Général des Impōts, art 244 quarter M, 199 ter L, 220 N and 223 O-1--m)
Objective(s) and target(s)
The official objective is to enhance vocational training for managers of companies
Year of implementation
2005
Year of latest amendment
2019
Operation/management
Companies subject to income tax must attach a special declaration, available from the tax office having jurisdiction over the company, to the annual declaration of income they are required to file.
Eligible group(s)
All companies
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
All type of education and training, provided that they are in accordance to the needs of the company
Source of financing and collection mechanism
State (loss of tax revenue)
Financing formula and allocation mechanisms
The amount of deduction is equal to the number of hours of training followed multiplied by the hourly minimum wage (SMIC). The calculated deduction is capped at 40 hours of training per executive and per calendar year. The hourly minimum wage was 9.61 on 1 January 2015, for a maximum deduction of 384 in 2015.
Eligible costs
Tuition fees/fees for participants (external providers), as well as some additional costs
Volumes of funding
EUR 53 000 000 in 2020 (Source : Jaune Budgétaire 2021)
Beneficiaries/take up
Approximately 52 840 companies benefitted from the tax incentive in 2018
Organisation responsible for monitoring/evaluation
France Compétences / AGEFICE
Monitoring/evaluation reports available
Not available
Most relevant webpage - in English
Not available
Most relevant webpage - local language
http://bofip.impots.gouv.fr/bofip/2035-PGP.html
Recent changes

09-10-2019 article 7 of the Project for the Finance Law. To evaluate the instrument and to set a date of termination.

Recent changes in response to COVID-19

No changes

Sources
http://bofip.impots.gouv.fr/bofip/2035-PGP.html
AGEFICE https://of.communication-agefice.fr/les-criteres-de-financement-de-lann…
https://www.service-public.fr/professionnels-entreprises/vosdroits/F234…
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