Tax Exemption on Employee Profit-Sharing Agreements
Purpose: Profit-sharing (participation) redistributes to employees part of the profits they helped to generate through their work. Sums paid under profit-sharing can be exempt from social and tax contributions. Beneficiaries indicated: companies with at least 50 employees, where the scheme is compulsory, and companies with fewer than 50 employees that set it up voluntarily, for all their employees and, in some cases, their managers. The financial information and availability must be checked against the current official source before use.
The “Tax exemption for employee profit-sharing agreements (participation)” scheme concerns companies with at least 50 employees, where the scheme is compulsory, and companies with fewer than 50 employees that set it up voluntarily, for all their employees and, in some cases, their managers. Its application depends on the legal and tax situation, the nature of the activity and the rules in force. Before relying on it, check the conditions with the administration or competent body, particularly if the catalogue parameters are old or incomplete.
Funded by Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique, Ministère du Travail et des Solidarités
Run a personalised scan to identify the public grants and funding your company may be able to access.
Who can apply
Beneficiaries indicated in the catalogue: the scheme is compulsory in companies with at least 50 employees, whatever their activity and legal form; companies usually employing fewer than 50 employees can set it up voluntarily. People concerned: all employees of the company (the agreement can include a length-of-service clause of up to 3 months); companies setting up profit-sharing voluntarily can extend it to the company head, their spouse with collaborating or associate spouse status, chairs, chief executive officers, managers or members of the management board; in companies where profit-sharing is calculated using a special formula, the part of the special profit-sharing reserve above the amount resulting from the legal formula can be shared between employees and company heads, their spouse with collaborating or associate spouse status, chairs, chief executive officers, managers or members of the management board. Eligibility depends on the legal form, activity, area and the legal conditions actually applicable.
Eligibility conditions
Conditions taken from the catalogue: Profit-sharing is set up by an agreement specifying how it applies within the legal and regulatory framework. The agreement is concluded either under the ordinary rules of collective bargaining (a collective agreement at professional or branch level), or under specific arrangements: between the company head and representatives of representative trade unions; within the works council; or following ratification by a two-thirds majority of employees. They must be compared with the current text, any local decisions and the applicable forms before concluding on eligibility.
What the scheme covers
Operation or advantage described: Profit-sharing redistributes to employees part of the profits they helped to generate through their work. Sums paid under profit-sharing can be exempt from social and tax contributions. For tax and social exemptions, check the basis and the triggering event; for regional mechanisms, check the eligible costs or uses.
Amount and funding terms
Amount or advantage mentioned in the catalogue: social regime: exemption from social contributions; a 20% social levy (forfait social) for companies with more than 50 employees. Tax regime: deduction from taxable profit; exemption from taxes (payroll, apprenticeship) and contributions (continuing training, construction). Do not treat a tax or social exemption as a grant paid out; confirm the basis, caps and conditions for the year concerned.
How to apply
Recommended steps: 1) confirm the applicable text and official page; 2) check the area, legal form and criteria; 3) check the form, application date and documents; 4) keep the acknowledgement of submission and supporting documents. Check the headcount thresholds, the applicable agreement, the calculation rules and the 2026 rules in URSSAF and tax sources before treating the whole regime as a uniform advantage. The ministry’s page confirms certain principles, but does not replace checking the employee savings and contribution rules in force for the specific situation.
Timeline
No usable end date is recorded in the catalogue. Check the timetable and applicable conditions with the administration or operator.
Key facts
- Funder
- Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique, Ministère du Travail et des Solidarités
- Type of funding
- Tax exemption
- Status
- Ongoing
- Funding rate
- 20%
- Automatically extracted — check the official source
- Geographic scope
- All of France
Frequently asked questions
What kind of advantage is this?
The catalogue describes the scheme as follows: profit-sharing (participation) redistributes to employees part of the profits they helped to generate through their work. Sums paid under profit-sharing can be exempt from social and tax contributions. It is a tax or social regime, an exemption or a relief mechanism; it should not be treated as a grant paid out if that is not its legal nature.
Do the same rules apply to all companies?
No. The obligations and advantages vary notably with headcount, the applicable agreement, the payment method and how the sums are invested. The ministry’s page confirms certain advantages, but the current social and tax parameters must be checked.
What amount or rate can be applied?
The catalogue indicates: social regime: exemption from social contributions; a 20% social levy (forfait social) for companies with more than 50 employees. Tax regime: deduction from taxable profit; exemption from taxes (payroll, apprenticeship) and contributions (continuing training, construction). This parameter must be confirmed according to the year, the basis and the beneficiary’s situation.
Which steps and dates should be checked?
No usable end date is recorded in the catalogue. Check the timetable and applicable conditions with the administration or operator. The ministry’s page confirms the tax and social advantages of profit-sharing and the removal of the social levy on profit-sharing for companies with fewer than 50 employees since 2019. The arrangements depend on the regime, the agreement and the situation of the company and its employees. The procedure and deadlines must be confirmed before acting.
Official source
No official URL is available in our data for this grant.
Other grants of type “tax exemption”
ACRE: who can benefit from the exemption?
Ministère du Travail et des Solidarités, URSSAF
Innovation tax credit (ITC): rates, expenses and declaration
Ministère de l'Enseignement Supérieur, de la Recherche et de l'Espace, Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
Up to €400,000
Craft trades tax credit (crédit d’impôt métiers d’art): check eligibility before filing
Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
Up to €30,000
Related needs and funding
Competitive calls for projects
Ecological transition and CSR
Capital and investment funds
Support and acceleration
Diagnostics and audits
Takeover and transfer
Discover the funding that fits your company
Check your eligibility for public grants
This scheme is only one of the grants your company may be able to access. Run a personalised scan to identify the funding opportunities that match your activity, location and project.
See the opportunities identified by the scan, then access your personalised report.