French General Tax Code
In force1. Where they are not taken into account for the assessment of income in the various categories, the sums paid by a taxpayer domiciled in France within the meaning of article 4 B for:
a) The employment of an employee who provides services defined in articles L. 7231-1 et D. 7231-1 of the Labour Code;
b) The use of an association, company or body declared pursuant to Article L. 7232-1-1 of the same code and which provides exclusively the services mentioned in a of this 1 or which benefits from a derogation from the condition of exclusive activity in accordance with article L. 7232-1-2 of the French Labour Code;
c) The use of a not-for-profit organisation whose purpose is home help and which is authorised under the social assistance scheme or has an agreement with a social security organisation.
2. The services must be provided at the residence, located in France, of the taxpayer or one of his ascendants fulfilling the conditions set out in the first paragraph of Article L. 232-2 of the Code de l'action sociale et des familles.
The services defined in 2°, 4° and 5° of I and in 8° to 10°, 15°, 16°, 18° and 19° of II of article D. 7231-1 of the Labour Code, in the version in force on 1 January 2021, are considered as services provided at the residence when they are included in a package of services including activities carried out at this same residence. When they are subscribed for the benefit of the persons mentioned in 2° of Article L. 7231-1 of the Labour Code, the remote assistance and video assistance services mentioned in 16° of II of Article D. 7231-1 of the same code which take the form of the detection of a potential or proven accident at home and its reporting to a third party or to the medical profession are considered to be services provided at the residence, even if they are not included in a package of services including activities carried out at this same residence.
In the event that the services are provided at the residence of an ascendant of the taxpayer, the latter waives the benefit of the provisions of article 156 relating to alimony, for the pension paid to that same ascendant.
The financial assistance mentioned in articles L. 7233-4 and L. 7233-5 of the Labour Code, exempt under 37° of l'article 81, is not taken into account for the benefit of the provisions of this article.
3. The expenses mentioned in 1 are deducted, for the amount actually incurred, up to a limit of €12,000, subject to the ceilings provided for in Article D. 7233-5 of the Labour Code in the version in force on 1 January 2021.
The €12,000 limit is raised to €15,000 for the first tax year for which the taxpayer benefits from the provisions of this article under a of 1.
This limit is raised to €20,000 for taxpayers mentioned in 3° of Article L. 341-4 of the Social Security Code, as well as for taxpayers who are dependent on a person, living under their roof, mentioned in the same 3°, or a child giving entitlement to the supplement to the disabled child's education allowance provided for in the second paragraph of l'article L. 541-1 of the same code.
The limit of €12,000 is increased by €1,500 per dependent child within the meaning of articles 196 and 196 B and in respect of each member of the tax household aged over sixty-five. The increase also applies to the ascendants referred to in the first paragraph of 2 who meet the same age condition. The amount of €1,500 is halved for children deemed to be equally dependent on both parents. The limit of €12,000 plus these increases may not exceed €15,000. However, where the provisions of the second paragraph apply, the €15,000 limit is subject to the increases provided for in this paragraph and the total amount of expenditure may not exceed €18,000.
4. The tax credit is equal to 50% of the expenditure referred to in 3 in respect of the services defined in Articles L. 7231-1 and D. 7231-1 of the Labour Code provided under the conditions set out in 2, borne by the taxpayer in respect of the employment of an employee or in the event of recourse to an association, company or body, referred to in b or c of 1.
The tax credit is deducted from the income tax after deducting the tax reductions mentioned in articles 199 quater B to 200 bis, tax credits and non-dischargeable levies or deductions. If it exceeds the tax due, the excess is refunded.
5. (repealed);
6. The sums mentioned in 1 are eligible for the tax credit, provided that the taxpayer indicates, in the declaration provided for in article 170 of this code, the personal services covered by article D. 7231-1 of the Labour Code in respect of which they have been paid and that it is able to present, at the request of the tax authorities, documents justifying the payment of salaries and social security contributions, the identity of the beneficiary and the nature and amount of the services actually provided paid to the association, company or body defined in 1 of this article.
