Employer reporting obligations relating to French-qualified awards

For French-qualified¹ stock options or BSPCEs² exercised in 2024 and French-qualified RSU vested in 2024, the French employer must prepare an individual statement with the exercise/vesting data to be provided to the beneficiary no later than 1 March 2025.

This individual statement has to be used by the beneficiary to report their taxable income in their French annual income tax return due in May/June 2025 if they have sold the shares acquired pursuant to the awards in 2024, and, if requested, the beneficiary must provide it to the French tax authorities.

In addition, a special report for French-qualified stock options and RSU may have to be prepared by the French employer,³ together with the French corporate documentation relating of the 2024 fiscal year. This report must be ready at the same time as all of the corporate documentation for the annual meeting of the shareholder(s) of the French entity. The date of the meeting depends on each company.

How we can help: Employer reporting obligations

We can assist you with preparing the individual statements for French-qualified awards exercised/vested in 2024.

Our assistance may consist of:

• Helping you to gather the relevant information that must be included in the individual statement;
• Reformatting the data into a usable single excel document; and
• Preparing the individual statement for each beneficiary ready to be sent.

Employee reporting obligations relating to French-qualified awards

As a French tax resident, a taxpayer is required to report their worldwide income (i.e., French and foreign sourced), while a non-French tax resident is required to report only French sourced income. The deadlines for filing the French income tax return for the 2024 French fiscal year (1 January to 31 December 2024) will be in May/June 2025.

Reportable 2024 income must include any taxable income derived from equity awards (e.g., ESPP discount, French qualified and non-qualified stock option, BSPCE and RSU income).

How we can help: Employee reporting obligations

We can assist your employees with reporting their 2024 equity income and gains in the relevant forms of the French annual income tax return. Depending on the nature of the income/gains, the amounts and the tax and social regime applicable to the income/gains, there are specific forms and specific boxes in these forms to be completed.

The income tax due by employees is calculated on the basis of the information provided in the forms – therefore, the forms have to be carefully completed. Often, employees have a significant amount of questions related to the completion of their tax forms.

We prepare a step-by-step guide to help employees report their 2024 equity gains, including:

• Description of the nature of each type of awards;
• Description of the tax and social regime applicable to each type of awards;
• Explanations of how to calculate the equity income/gains to be reported (i.e., method to determine the taxable amount upon vesting/exercise/settlement/sale of the underlying shares, including for mobile employees);
• Explanations of how and where to report the calculated taxable amounts in the relevant forms/boxes; and
• Explanations of how and where to disclose any foreign bank and share account for French tax residents.

We can also organize a live session to go through the step-by-step guide together with the employees and respond to their questions. The information provided is general and does not constitute individual employee tax advice.

Our fee will vary depending on the number of employees, types of awards, and service required.

To obtain a fee proposal, contact our Paris colleagues, Agnès Charpenet and Emilie Suryasumirat, or your Compensation attorney for support.

1 To be French-qualified, awards must be granted under a French sub-plan to the parent company plan and subject to specific conditions as provided for by the French commercial code. French-qualified awards are able to benefit from special (usually favorable) tax and social security contribution treatment.

2 BSPCE refers to « bon de souscription de parts de créateur d'entreprise » a special kind of qualified stock option available to start-up companies and likewise subject to favorable tax and social security contribution treatment in France. 

3 Provided the French employing entity is organized as a SA or SAS.