Article abstract:
The law of November 29, 2023 introduced a new mandatory experimental value-sharing scheme for small businesses.
In this article, we will review the conditions under which your company can enable your employees to benefit from this scheme, as well as the procedures for implementing it.
The conditions for your employees to benefit from this scheme :
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- This experimental scheme concerns companies with at least 11 employees that are not obliged to set up a profit-sharing scheme.
- This system must be set up when the company has made a net profit for tax purposes equal to at least 1% of sales for three consecutive financial years.
⚠ Net profit for tax purposes corresponds to the profit taken into account in the legal formula for calculating the special profit-sharing reserve, as set out in Article L.3324-1, 1° of the French Labor Code.
When these conditions are met, you must implement one of the following three measures:
- Setting up a profit-sharing agreement ;
- Setting up a profit-sharing scheme ;
- Contributing to an employee savings plan ;
- Pay a value-sharing bonus.
Important: if your company already implements one of these three schemes, then you will be exempt from this obligation, which you are already implementing in practice.
⏰ This obligation will apply to financial years starting on or after January 1, 2025, and the three previous financial years will therefore be taken into account to determine whether or not you need to set up one of these systems in your company.
We therefore recommend that you check your net taxable income for the years 2022 and 2023 to ensure whether or not you meet the required conditions, since you will be subject to this obligation, if applicable, as early as 2025, depending on the results for the year 2024.
The scheme will run for 5 years from the date of promulgation of the law, i.e. from November 29, 2023 to November 2028.
Cabinet DESRUMAUX AVOCATS will be happy to provide you with further information on this scheme and, if you are concerned, to help you set up your own.
