SAS Savaro requested the cancellation of payroll tax assessments concerning the remuneration of its managing director and its chairman on the ground that they are not considered as employees within the meaning of the employment law. The Conseil d’Etat held that the income from activities mentioned in article L311-3 of the Social security code must be included in the payroll tax base and thus aligned the tax base of payroll tax with that of the Social security contribution (under the regime applicable before 1 January 2013).
The company Juliane requested the annulment of paragraph 40 of the guidance BOI-TPS-TS-20-10-20140122, on the ground that it enlarged the scope of the payroll tax (under the regime applicable from 1 January 2013 onwards). The Conseil d’Etat held that this paragraph of the French tax authorities’ guidance is illegal: only the income from activities mentioned both in article 80 ter of the French tax code and in article L311-3 of the Social security code are included in the payroll tax base. The payroll tax regime is aligned with the General social contribution (French: CSG) since 1 January 2013.
The regime applicable to the remuneration of these executives has now been conclusively established.