An insight into tax-free corporate fitness incentives in France.
Why should you offer corporate fitness incentives?
Offering corporate sports can bring many benefits. It can help to reduce stress and as such increase the well-being of your employees. Corporate fitness programs can improve the work life balance of your employees and increase motivation. It can also help to create a team culture at work.
Corporate fitness incentives : a taxable fringe benefit ?
The financial contribution of an employer to fitness programs is a fringe benefit. This would normally be subject to contributions and taxes. However, in order to promote and encourage the practice of sport in a company, the employer’s contribution can be in some cases exempted from Payroll Taxes in France.
Tax-free corporate fitness incentives in France
Two types of provisions can be exempt: sport facilities and funding of activities.
Provision of sport equipment and facilities for collective use
– Provision of a gym owned or rented by the company;
– Provision of changing rooms and showers;
– Provision of sports equipment.
The facilities dedicated to physical activities must be accessible to all employees. The access must not be discriminatory (no restriction based on the nature or duration of the employment contract).
What is the tax-free limit for sport facilities and equipments?
The fringe benefit of sport equipments and facilities provided by the employer is entirely exempt from contributions, without any limit.
Funding of sport and fitness activities
– Financing of group lessons of physical and sporting activities;
– Financing of sports events or competitions.
The activities must be organized by the employer. He must inform all employees of the conditions for participating in these activities (e.g. locations, times, registration procedures, …).
What is the tax-free limit of fitness activities ?
The financing by the employer of physical and sporting activities is exempt, within the annual limit of 5% of the monthly value of the social security ceiling multiplied by the number of employees.
Company staff headcount : 22 employees
Company’s total funding of activities : 5000 Euro for group gym and yoga classes, accessible to all staff
Maximum amount of the exemption :
Monthly Social Security ceiling 2022 : 3428 Euro
Annual limit per employee 5 % : 171.40 Euro
Total annual limit : 3770.80 €
As the employer’s contribution exceeds the amount of 3770.80 €, the difference of 1229.20 Euro will be subject to social contributions.
Which fitness programs cannot be tax-free ?
The exemption from social security contributions does not apply to individual memberships (e.g. employee’s personal gym memberships).
Employee benefits in France such as corporate fitness incentives can not only help to increase employee satisfaction, they are also interesting from a financial perspective. Together with other benefits in kind such as employee vacation incentives or employee gift cards they can set your company apart.
Advising on incentives is included in our Payroll Services in France. Feel free to contact us if you wish to learn more about corporate fitness incentives or other benefits in kind.