2018 Social Security Draft Bill: The employer contribution due on French qualified free shares may be set at 20% again

The 2018 social security draft bill has been presented by the French government on October 11th 2017 and is currently being discussed by the French Parliament.

This draft bill amends the increase of the employer contribution due on the grant of qualified free shares pursuant to the French Commercial code.

The tax and social regime appplicable to qualified free shares had been simplified by the Macron law enacted on August 6th 2015, which had lowered the rate of the employer contribution to 20% and moved the triggering event to the vesting of the shares. The Tax Bill for 2017 had increased the rate to 30%.

The French representatives have voted, on October 26th, an amendment that has been put forward by some of the majority representatives. This amendment aims to decrease from 30% to 20% the rate of the employer contribution due upon vesting of the shares.

This reduced rate would be applicable to qualified free shares awards authorized by a shareholder’s meeting held after the entry into force of the law and will become final only after the French Senate (the other French Parliament Assembly) also enacts the law.

Christina Melady

Christina Melady, Partner, has over 23 years’ experience practicing tax law in France and advises both companies and managers on personal tax matters. Christina created the specialized practice in France […]

Alexis Fillinger

Alexis Fillinger has more than 16 years of practicing. He advises both companies and individuals on personal tax related matters. He has developed his expertise in management, carried interest, co-investments, […]

Nicolas Meurant

Nicolas Meurant, Partner, has over 23 years’ experience providing advice to corporations and individuals in individual tax and Global equity area, in the structuring of shareholding schemes, as well as […]