Withholding tax: obligations of the employer

Verified 06 February 2026 - Public Service / (Prime Minister)

The withholding tax (PAS) consists in deducting a part of the income tax payable by the employee each month from wages. To carry out this operation, the employer applies a rate set by the tax administration.

The withholding tax (PAS) is applicable in particular to the following income or remuneration:

  • Salaries and wages, payments made immediately to employees under the participation or profit-sharing the company's profits (i.e. when these funds are not allocated to an employee savings plan)
  • Daily allowances social security (IJSS) payments in the event of sickness, accident or maternity
  • Unemployment benefits (ARE) and early retirement benefits
  • Retirement pensions

The withholding of income tax takes the form of a withholding tax.

It's there person or theorganization that pays the revenue who makes this withholding tax. For example, France Travail for unemployment benefits or the pension fund for retirement pensions.

However, some revenues are not collected at source. They then give rise to prepayments, calculated by the tax authorities on the basis of the income declared in the previous year. This is particularly the case for the income of a self-employed.

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For salaries, it is the employer which make this deduction every month.

When the employer joins the service Tese it is this service that takes care of all the operations related to the withholding tax.

The PAS rate is determined for each employee by the tax administration. The employer then forwards it to the employer.

Calculation of the withholding tax (PAS)

The rate of withholding tax is determined for each employee by the tax administration. It is calculated on the basis of the last tax return of the employee.

The rate is individualized. But the employee can opt for the application of the household rate or choose the application of a neutral rate.

Individualized rate

The individualized rate is calculated by the tax authorities based on each person's income and is therefore different for each of the spouses who are married or entered into a civil partnership and jointly taxed.

This rate makes it possible to take into account any income disparities within the couple. He is individualized for personal income only (salaries, pensions, BIC: titleContent, etc.) of each spouse or partner bound by a Civil partnerships: titleContent.

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The employee may wish to apply the tax home and to do for this the steps via its online space, using the « Manage my direct debit » service.

Neutral rate (or default rate)

An employee may choose not to disclose his or her personalized tax rate to his or her employer. In this case, the employer applies a neutral rate that depends solely on the amount of remuneration paid by the employer.

This rate also applies when the employee has never taken out a tax return or when the ordinary rate is not sent to the employer or is sent to him late.

The neutral rate is determined according to grids established by the tax authorities.

Transmission of the withholding tax (PAS)

The withholding tax rate is transmitted each month by the tax authorities to the employer so that it can apply the rate reflecting the most recent situation of the employee. The employer has a 60 days to apply the rate made available to it by the administration.

The source sampling system is fully integrated into the registered company declaration (DSN) that the employer must transmit each month.

The employer must deduct the withholding tax on income (IR) at the same time as the social security contributions on a monthly basis. It then remits the withholding tax to the company Tax Office (SIE).

1Declaration of salaries via the DSN

The employer who pays wages must file a registered company declaration (DSN) every month depending on the period of paid employment. It's a statement online.

The NSD shall include the following statements:

  • Monthly declaration which is used to transmit information on employees to social bodies (Urssaf: titleContent, CPAM: titleContentFrance, Travail) and to pay employees' social security contributions
  • Event Statement to report certain events (work stoppages and termination of contracts). This must be done within 5 working days following the event.

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Some employers are not subject to the NSD. This is particularly the case for foreigners employers whose employees reside in France. They must submit a declaration known as " withholding tax for other income » (PASRAU).

The NSN is sent within a time frame that varies depending on the size of the company:

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Company with less than 50 employees

The NSN must be performed on the 15th of the month following the period of work paid:

Registered company declaration (DSN)

The DSN contains various data concerning the employee, employment contracts, remuneration, contributions paid, etc. These data can be consulted in detail on the Net-companies document.

Company of more than 50 employees

The NSN must be performed:

  • Either the 5 of the month following the period of paid work for employers who pay in the same month as the work period
  • Either the 15 of the month in the event of a pay offset.

Registered company declaration (DSN)

The DSN contains various data concerning the employee, employment contracts, remuneration, contributions paid, etc. These data can be consulted in detail on the Net-companies document.

2Withholding tax at source

The withholding tax shall be applied to the net taxable amount of salary. This amount is obtained after deduction of social security contributions and the deductible share of the CSG: titleContent.

3Payment of withholding tax to DGFIP

The withholding tax levied and declared via the DSN is then returned to the company Tax Office (SIE). The competent EIS is that of the company's (employer) registered office.

Payment of withholding tax (SAR)

The employer pays the withholding tax (RAS) to the company Tax Office (SIE) by remote settlement.

To do this, he must declare and validate a bank account in the professional area of the tax site:

Espace professionnel impots.gouv.fr

Reversal time

The repayment of the withholding tax to the tax authorities takes place the following month the one in which the deduction was made.

When the employer makes the payroll after the monthly period of employment (the so-called pay offset practice), the repayment of the deduction at source occurs in the month in which the deduction was made.

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The company of less than 11 employees may opt for a quarterly payment: no later than the 15th day of the first month of the quarter following the one during which the deductions took place.

Employers face tax and criminal penalties if they do not comply with the regulations on withholding tax.

Tax penalties

The employer shall be liable to a fine in the following cases:

  • In case of omissions or inaccuracies: 5% withholding taxes that should have been made or reported
  • In case of failure to report within the time limit: 10% withholding taxes that should have been made or reported
  • In case of inaccuracies or willful omissions: 40% withholding taxes that should have been made or reported
  • In case of non-declaration and non-payment to the tax authorities: 80% withholding taxes made

There can be no cumulation between these different fines.

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The fine may not be less than €250 by declaration.

The delay in the payment of the withholding tax gives rise to a markup from 5% the amount not paid.

Criminal sanctions

Voluntarily failing to declare and remit withholding tax to the tax authorities may result in a criminal fine of €1,500 if the delay exceeds one month.

FAQ