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Young people on apprenticeship contracts benefit from an income tax exemption. Beyond an annual minimum wage, their remuneration must be declared to the tax authorities. Explanations.
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In just a few years, the number of young people in apprenticeships has jumped in France. While there were 487,114 contracts signed in 2019, this figure now exceeds one million, according to the Ministry of Labor. These employees, in training, receive a salary from their tutor company. Remuneration which varies depending on the age of the apprentice, and which is set by the Labor Code. Positive point, this is exempt from income tax up to the annual amount of the SMIC. Namely, up to 20,815 euros of gross annual remuneration in 2023. This is explicitly stated in the General Tax Code: “The wages paid to apprentices with a contract (…) are exempt from income tax up to the annual amount of the minimum growth wage.” However, be careful, because to benefit from this tax exemption, the apprentice must have signed a formal apprenticeship contract.
In practice, apprentices must therefore indicate in their income tax return “the part of the salary received in 2023 which exceeds 20,815 euros”, reminds Bercy. Let’s take an example: an apprentice received 25,000 euros in salary in 2023. Their income to declare amounts to 25,000 – 20,815 = 4,185 euros. To this amount, the tax administration applies, as for any employee, the flat rate deduction of 10% for professional expenses..
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Pre-filled amount
Apprentices can rest assured, if their annual remuneration exceeds the tax threshold (20,815 euros in 2023), the amount is, in principle, pre-filled by the tax authorities. It is indicated on the line “Salaries and wages” of the income tax return, in cells 1AJ or 1BJ. But if this is not the case or if the amount is incorrect, it must of course be entered or corrected.
Furthermore, in the case where the apprentice is attached to the tax household of his parents, his salary appears in the tax return of the declaring parent, always on the line “Salaries and wages”, but in 1CJ or 1DJ cells.
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