Calculation of Tax Rates

Specific value definitions are delivered as part of the France Payroll solution.

The value definitions provided are:

• Neutral Rates bands and values table to be used to calculate PAS if rate provided by the government is unavailable.
• RAS taxation bands and values table to be used to calculate tax for employees resident abroad.

Neutral Tax Rates

Neutral tax rates and bands are stored in Calculation Value Definitions:

Navigate to: My Client Groups > Payroll > Calculation Value Definitions - PAS Rate for Metropolitan

Note: Only Metropolitan tax rates are provided.

RAS Tax Rates

RAS tax rates and bands are stored in Calculation Value Definitions:

Navigate to: My Client Groups > Payroll > Calculation Value Definitions - RAS Rate for Nonresidents

PAS Calculation

PAS calculation will derive the rate either from the employee’s calculation card (for the government communicated rate) or in the absence of the same it will use the above defined neutral rate and will apply it to base balance: Amount liable to PAS.

Here is the priority order that the process uses to select the rate:

• Real Rate with matching Reporting Establishment
• Future Rate with matching Reporting Establishment
• Real Rate with non-matching Reporting Establishment
• Future Rate with non-matching Reporting Establishment
• Future Implied or Implied Rate with matching Reporting Establishment (Latest File date)
• Future Implied or Implied Rate with non-matching Reporting Establishment (Latest File date)
• No PAS data found, use Neutral Rate - Metropolitan

RAS Calculation

RAS calculation will derive the progressive rate scale from the above defined RAS rate table. The rate scale will be applied to base balance: Amount iable to RAS.