Written by Peter Harrison


So, you have received a job offer from a company in France and, as you have been successful in working via your own European Personal Services Company (PSC) in the UK, in Belgium or any other EU country, you are over the moon! No problems should arise; you can get a better net retention than if you needed to become someone’s employee (working through a portage salaried solution) and you get to save time on bureaucracy.

France is a very tech-savvy country, with many job opportunities for highly qualified information consultants-just like you. However, this is not the whole picture. Choosing to work under your own personal service company in France involves being very careful in your business decisions and activities. The risk for foreign PSCs in France is that they fall under French tax legislation, through the creation of what is known as a Permanent Establishment (PE).

EFFECTIVELY WORKING UNDER YOUR PSC IN FRANCE

Your company can only be classed as a foreign employer in France if all major company decisions are made outside of France. Bear in mind the French corporation tax is set at a rate of 33%, this is a situation you certainly want to avoid, if you’re looking for maximum salary retention. The most likely way your PSC will be classed as a foreign employer is if you are neither director or majority shareholder of the company. The PSC solution is not suitable in this instance and this is even the case if you happen to be married or related to the director of the company.

If you meet the above conditions and are not director or majority shareholder and have plans to work in France for nine months or more, the PSC solution could be your best choice. You can use your PSC in every business situation from signing contracts to raising invoices and eventually getting paid. Working under a PSC will deliver a much higher salary retention or net remuneration than if you were employed by any French company or freelancing.

Remembering the importance of staying within the French law in terms of your position within your PSC, it is possible to work with us to look more closely at how you can effectively work in France, for example, using a UK PSC. You must be a registered employee of your PSC which you should then register as your foreign employer in France. As an employee of your PSC you will pay taxes in the UK and in France but only social security payments in one of the two countries. If you have your A1 certificate from the UK ready, then you will not have to pay social security contributions in France.

CONCLUSION

Using your own PSC in France is one of the most effective options for contractors who meet the above conditions. It’s an especially good choice to achieve compliance as well as a high level of net retention.