Thursday, 20 January, 2022

Taxes: the puzzle that awaits individuals employing home-based employees


A decision of the Council of State goes against the stream of the simplification of the tax credit for home employment. This tax advantage will no longer apply to certain ancillary services such as accompanying a child or transporting a disabled person.

The Council of State restricts the scope of activities giving entitlement to the tax credit for home employment.

The next tax return may turn into a headache for some taxpayers. A decision of the Council of State will indeed give a hard time to individuals who employ people at home, either directly or through an association, a company or an organization. These households, which are entitled to a tax credit equal to 50% of their expenses, up to an annual limit of 12,000 euros, will have to review their calculations.

In a judgment dated November 30, the highest administrative court adopted a very strict definition of home work, which excludes services performed outside the residence of the individual employer. In doing so, as noted by the Legifiscal site, the Council of State quite simply canceled the interpretation of the tax administration relating to “external services included in a global offer”.

A decision of the Council of State goes against the stream of the simplification of the tax credit for home employment. This tax advantage will no longer apply to certain ancillary services such as accompanying a child or transporting a disabled person.

The Council of State restricts the scope of activities giving entitlement to the tax credit for home employment.

The next tax return may turn into a headache for some taxpayers. A decision of the Council of State will indeed give a hard time to individuals who employ people at home, either directly or through an association, a company or an organization. These households, which are entitled to a tax credit equal to 50% of their expenses, up to an annual limit of 12,000 euros, will have to review their calculations.

In a judgment dated November 30, the highest administrative court adopted a very strict definition of home work, which excludes services performed outside the residence of the individual employer. In doing so, as noted by the Legifiscal site, the Council of State quite simply canceled the interpretation of the tax administration relating to “external services included in a global offer”.