An employee logically receives remuneration for the work accomplished. In addition to the salary paid in money, other forms of remuneration can be added, such as benefits in kind. That “consists of the supply or making available of a good or service, allowing the employee to save costs that he or she would normally have to bear“, indicates the government social security website. Concretely, these are advantages from which an employee benefits: he can receive it free of charge or pay a small part of it. As benefits in kind are considered a form of remuneration, they must be declared for tax purposes. There are several categories of benefits in kind and this concerns: food, housing and even the vehicle.
What is included in the “food” in-kind benefits?
For the food, “the provision or provision by the employer to his employees of a good or service free of charge or at a price lower than their actual value” is considered a benefit in kind. But it also depends on the amount of the employee’s participation. For example, in the context of the provision of the meal thanks to the company restaurant, it is this specificity of the amount of participation of the employee. employee who will play a role in whether or not they are considered a benefit in kind.
“You must declare the benefits in kind that your employer grants you if you have the tax status of an employee“, specifies the French administration website. Thus, a meal has been valued at €5.35 since January 1, 2024. Note that “the salary entered on your pre-completed tax return includes the value of the benefits you received“.
What is included in “housing” benefits in kind?
Some employers who are tenants or owners may decide to provide accommodation for one or more employees. This can be done free of charge or very little, that is to say the amount is not comparable to rent. The assessment of the benefit in kind can be done at a flat rate, according to a scale, or according to the cadastral rental value. It is the employer who chooses one or the other of the two options. In order for it to be considered a benefit in kind, the lease must be in the name of the employer and not the employee. To find out the flat-rate assessment scale for the housing benefit in kind, go to the site of Urssaf. To note that “when the housed employee pays a fee for the occupation of his accommodation, this amount is deducted from the evaluation of the benefit in kind“, indicates the social security website.
What is included in the “vehicle” benefit in kind?
If a company vehicle is made available to an employee on a permanent basis and therefore they can use it privately, this constitutes a benefit in kind. It does not matter whether the employer owns or leases the vehicle. “The benefit in kind will be evaluated, at the employer’s discretion, either on the basis of expenses actually incurred, or on the basis of a fixed price.“, explains Urssaf.
Having the vehicle permanently available means that the employee does not have to return the vehicle on weekends or during vacation.
How to declare these benefits in kind?
In the majority of cases, benefits in kind are already included in the amount of wages declared by the employer to tax. If you want to check that the pre-filled amounts are the correct ones, then you can check on your pay slips, as it is mandatory to indicate the amount of benefits in kind each month.