948 euros but cannot be less than EUR 415

Salaries, wages and pensions

Subject to specific exemptions are taxable wage amounts collected at a salaried activity, and what it the salary in the strict sense or its accessories (13emois, premiums, etc.), that he be paid in cash or in kind (car service, etc.).

Taxable wages are, in principle, those actually collected from January 1 to December 31, 2009, without regard to the fact that the income relates to a previous year (back pay for example) or that it be paid in advance.

To note are treated as wages and imposed as such daily allowances paid by social security and welfare agencies, sickness or maternity, as well as unemployment benefits paid to the employee private employment.

The wages received by dependent children must be carried forward in the Declaration of the parents, with the exception, to name only few of those received by apprentices in the limit of the minimum wage (or 16.052 euros for an annual complete in 2009), of those received by students in business, under certain conditions.

Moreover, the wages paid to young people aged 25 years to January 1, 2009 in exchange for an activity during their secondary or university education or during their school holidays or academics are on option, exempt from income tax in the limit of three times the monthly of the SMIC (4.013 euros in 2009).

RECALL the overtime since October 1, 2007 are exempt from income tax.

Termination and retirement benefits

Compensation for breach of the contract of employment are taxable to the exception:

dismissal and voluntary departure allowances paid in respect of a plan for the employment protection;

the benefits paid to the employee dismissed for non-compliance of the dismissal procedure;

the benefits paid in the absence of real and serious reason for dismissal (under conditions of particular seniority);

of severance resulting from an accident at work or an occupational disease;

a voluntary severance paid under the management of jobs and skills (GPEC), their fraction exceeding not four times the annual ceiling of social security in force at the time of the payment of compensation, or 137.232 euros for the compensation received in 2009 (and 138.480 euros for 2010);

( of termination and benefits the benefits negotiated under the new procedure of licensed conventional rupture when the employee may not receive a retirement pension (basic and/or supplementary plan), for the fraction that exceed not the higher of the following three amounts: 1) the amount provided for by the collective of branch, professional and interprofessional agreement orfailing that, by the law;

(2) 50 of the amount of the allowances;

(3) two times the amount of the gross annual remuneration perceived by the employee during the calendar year preceding the breach of his contract of employment.

However, the fraction of allowances exempt application of the last two limits cannot exceed six times the annual ceiling of social security in force at the time of the payment of compensation (or 205.848 euros for the indemnities received in 2009 and 207.720 euros for those collected in 2010).

However, the amount of legal or contractual compensation will be exempt in whole, even when it exceeds six times the annual ceiling of social security.

allowances of retirement on the initiative of the employer, for the fraction that exceed not the highest of the three following amounts:

(1) the amount provided for by the collective of branch, by the professional and interprofessional agreement or, failing that, by the Act;

(2) 50 of the amount of the allowance for retirement or;

(3) two times the amount of the gross annual remuneration perceived by the employee during the calendar year preceding the retirement.

However, the exempt fraction resulting from the application of one or any of the last two limits cannot exceed five times the annual ceiling of social security in force at the date of the payment of compensation (is 171.540 euros for the indemnities received in 2009 and 173.100 euros for those collected in 2010).

However, the amount of legal or contractual compensation is exempt in whole, even when it exceeds the threshold of 171.540 euros.

NEW partial exemption of income tax applicable to the benefits received by employees for voluntary departure in retirement was abolished, effective January 2010.

Compensation paid to certain social agents and leaders at the termination of their functions are taxable. However, termination forced functions, including revocation, the fraction of the benefits which did not exceed 50 of the amount of compensation, or twice the amount of the gross annual earnings seen in the calendar year preceding the termination of the functions, is exempt in the limit of six times the annual ceiling of social security in force at the time of the payment of compensation (or 205.848 euros for the compensation received in 2009 and 207.720 euros for those) (collected in 2010).

The fraction of benefits is taxable will benefit from the system of the quotient (or sprawl as the case may be) to mitigate the progressivity of the tax.

Daily allowances for social security

NEW effective January 1, 2010, social security (or agricultural social mutuality) daily allowances paid to victims of accidents at work or an occupational disease patients will be exempt to 50 of their amount. Therefore, these allowances will be subject to tax on the income of 50. This measure does not apply to employees in permanent incapacity for work

or disability pension (and non-daily allowances).

Deductions and allowances

The deduction of social security contributions. If social security contributions are deductible from taxable earnings, some contributions to supplementary pension plan and supplemental pension plans are only in a certain limit (including any payments of the employer): 8 of the annual gross salary withheld to a maximum of eight times the annual ceiling of social security, namely a maximum deduction of 21.957 euros for additional pension contributions paid in 2009. 7 of the annual ceiling for the calculation of social security contributions plus 3 of the annual gross salary, the result does not exceed 8.234 EUR for pension contributions made in 2009.

Exceeding these limits, the excess of salary expenses (commonly called "reintegration") is not deductible and share the responsibility of the employer constitutes a taxable earnings supplement.

The lump-sum deduction of 10 for professional expenses enjoyed by all the employees in the tax home is capped at 13.948 euros, but cannot be less than EUR 415. This minimum is increased to EUR 910 for long-term job seekers (registered for more than a year at pole employment).

Note the taxpayers have the opportunity to renounce the lump-sum deduction of 10 and to opt for the deduction of the amount of the professional real costs, provided they can justify their nature and their amount. Note that freight home-place of work are deductible at height of 40 km (one-way), without requiring the taxpayer to report circumstances to justify the choice of a remote residence.

(Read the professional income, suite page 4)