Legislative Framework

Legislative framework

Borloo Law tax benefits of the Act of 26 July 2005


Total exemption of social and tax charges limited at €1,830 per year per employee.
Under the Borloo Act of 26 July 2005, companies benefit from a tax credit equal to 25% of the aid paid.

slide-3This tax credit on profits (to a maximum of €500,000/year) takes into account the expenses of the company:

  • To offer its employees the services at work (concierge, nursery).
  • Finance all or a part of the value of the Universal Employment Services Cheques (Chèques Emploi Service Universels in French) prefunded to its employees.

Furthermore, for the establishment of a nursery:

The company which wish book places for its employees benefits from a 50% of family tax credit and may deduct from the corporation tax 33% of expenses. Therefore, the State supports 83% of spending through tax deductions.

Legal texts

The Borloo plan: French law n°2005-841 du 26 juillet 2005.

The Fiscal Instruction explanatory note n°115 of 17 October 2007(4 F-3-07 of the French General Tax Directorate), confirms that the financial support (tax credit "family") granted by the Article L.129-13 of the French Labour code, may be aimed to the development of corporate concierges (section 2.5). The tax credit for expenses incurred under the financial support of the company mentioned in the Article L.129-13  of the French Labour code is limited to €500.000; article 244 quater F of the French General Tax Code.