The reimbursement of costs incurred by business owners and managers in SARL and SAS companies in the course of their professional activity is highly regulated. Two basic rules must be respected for a company to reimburse any expenses engaged:
1. The costs must have been in the company’s best interests
2. The person who engaged the costs must provide a receipt (invoices, expense reports, etc.)
A distinction is made between the reimbursement of business meals and personal meal expenses:
- Business meals are 100% refundable.
- Personal meal expenses are more or less refundable depending on the tax system.
From tolls to parking charges, hotel bills, airline or train tickets, all costs relating to business travel may be reimbursed by the company. N.B.: Commutes to work are not reimbursed!
Rent and charges when the company address is the manager’s home
When the manager uses a room in his home to practice his professional activity, he can ask the company to reimburse a portion of his rent as well as certain other expenses (electricity, internet, telephone…)
Except for obligatory or necessary professional clothing (lawyer’s dress, protective outfit…), clothing expenses related to the personal presentation of a manager are neither refundable nor deductable by the company.
Executive training is refundable. Management training fees are fully covered.
BY FATEN AMAMOU (CHARTERED ACCOUNTANT)
ESCEC INTERNATIONAL – WWW.ESCEC-INTERNATIONAL.COM
Member of the French Chartered Institute of Accountants and founder of ESCEC International. Faten has 15 years’ experience establishing and registering businesses in accounting, taxation and social matters. Faten provides entrepreneurs with professional advice and support for setting up a company.
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