France Tax Agency Announces Temporary Withholding Tax Exemption on Tips, Specified Employer Transportation Reimbursements

The French General Directorate of Public Finance Dec. 29, 2025, announced a temporary withholding tax exemption for certain types of income, from Jan. 1 until the promulgation of Finance Act 2026. The announcement includes that the exemption applies to: 1) tips paid to employees who earn no more than 1.6 times the minimum wage, whether paid to the employee directly or indirectly; and 2) employer reimbursements for the cost of season tickets for employees’ travel between their usual residence and their workplace by public passenger transport or public bicycle rental services, beyond the employer’s statutory obligation, up to 25 percent ...