Any foreign company paying salaries to workers in France, without having a permanent establishment there, must register with the French tax authority for withholding tax (PAS) — whether or not that company is already registered for VAT in France. PAS is an autonomous obligation, distinct from VAT. A company may be subject to it without having any VAT obligation in France.
This registration requires obtaining a SIRET number, creating a business account on impots.gouv.fr, and appointing an accredited tax representative for PAS — unless exempt (companies established in the European Union, the European Economic Area, or a country with a mutual administrative assistance agreement with France). If your company already has a tax representative for VAT, the same representative can be extended to cover PAS (Article 302 decies of the French Tax Code); otherwise, a dedicated PAS representative is appointed independently.
Filing is then carried out through the PASRAUThe dematerialised reporting channel for France's payroll withholding tax (PAS), often used by foreign employers. Learn more → flow, specifically designed for collectors without a French bank account. AFC handles the calculation and monthly transmission of the withholding rate, as well as net salary payments and social security contributions to the relevant bodies: URSSAF, pension funds, health insurance, welfare schemes, and occupational health services.
Are you affected?
- Foreign company employing one or more staff members in France
- No permanent establishment in France
- Salary payments subject to French withholding tax
- Obligation to contribute to French social security bodies (URSSAF, pension, health insurance…)
- No exemption from the tax representative requirement (non-EU/EEA company, no administrative assistance agreement with France)
How we proceed
Review and register your company
Assessing your situation, obtaining a SIRET number if needed, and creating your business account on impots.gouv.fr.
Appointing your PAS tax representative
Extending your existing VAT representative if you have one, or appointing a dedicated representative if your company isn't already represented for VAT.
Tailored PASRAU filing
Setting up the PASRAU filing flow for collectors without a French bank account.
Calculation, salary and contribution payments
Calculating and monthly transmitting the withholding rate to the DGFiP, paying net salaries and contributions to URSSAF, pension funds, health insurance, welfare schemes and occupational health services.
Frequently Asked Questions
What is French payroll withholding tax (PAS) for a foreign employer?
PAS is France's payroll withholding tax system. A foreign employer paying a taxable salary in France must withhold this tax directly from the net salary before payment.
What is PASRAU and how does it differ from standard PAS?
PASRAU is the dematerialised reporting channel used to transmit PAS data to the tax authorities, particularly when the employer doesn't have access to standard French payroll software.
Can a foreign employer without a French bank account report via PASRAU?
Yes, PASRAU was specifically designed to let collectors without a French bank account submit their returns and arrange payment of the withheld tax.
Does PAS apply in addition to VAT registration?
Yes, these are two separate, independent obligations: VAT registration concerns commercial transactions, while PAS concerns salaries paid to employees subject to French income tax.
How is the withholding rate determined?
The rate is generally provided by the French tax authorities based on the employee's tax situation; a default rate applies if no personalised rate has been provided.
What happens if a PASRAU filing is late?
A late filing can result in financial penalties, as well as a risk of follow-up requests or an audit from the tax authorities.