The tax period is approaching this month in April 2025. As every year, French taxpayers must pay special attention to each line in their tax form. Among many boxes present, some may significantly lighten your tax account. Box 1PB is one of these advantageous options, especially for catering and hotel professionals who perceive tips.
Extraction tax from tips: Unknown advantage
Since 2022, the beneficial tax measure has enabled employees in certain sectors so that they are not stored on their tips. This provision, originally established to support the catering and hotel industry after the health crisis, will continue until 2026. It represents real financial support for the employees in question.
The aim of this measure is to double: on the one hand, it helps experts in this industry to increase their net income and, on the other, encourages customers to reward quality services. Therefore, this exemption is a virtuous circle for the entire hospital sector.
For employees with modest income, this provision may represent a significant difference in the final amount of taxes to be paid. It is an opportunity that you will not be overlooked in your personal tax strategy, especially if you work in the industries in question.
How to benefit from an exception through a 1PB box
If you want to use this tax relief, you have to check the 1PB box of your tax return. This particular field is devoted to the exemption of income, among which tips appear. By postponing the corresponding amount in this field, you point to the tax administration that these amounts must not be integrated into the calculation of your taxation.
Be careful, however, with the preliminary declaration system, it often happens that your employer has already transferred all your tax revenues, including tips. In this case, these amounts will automatically appear in the 1AJ box that combines taxable wages. It is then up to you to perform manual correction.
To correct this situation, it is necessary to deduct the amount of tips from the box 1AJ and report them in the box 1PB. This simple but basic approach allows you to miss this legitimate tax reduction. Do not neglect this step when verifying a preliminary statement.
Conditions to be observed for liberation from tips
Access to this tax exemption is framed by several specific criteria that should be fully understood. Initially, the total amount of your tips should not exceed 20% of your annual gross reward. Therefore, it is recommended to perform this calculation upstream to prevent any disappointment.
Secondly, this measure specifically focuses on employees receiving a modest salary. To make your monthly reward eligible, it should not exceed the minimum wage 1.6 times. In addition to this ceiling, liberation does not apply, even if you work in the sector concerned.
Thirdly, only certain types of tips are taken into account within this exception. These are rewards provided directly by employees, whether in cash or by bank card. Tips paid to the employer and then redistributed to employees are also eligible for this beneficial tax measure.
Simplify the income statement
The task of the statement of your income has been greatly reduced in recent years due to preliminary form. The tax administration now automatically includes a lot of information transmitted to employers, social security organizations and financial institutions. This system allows taxpayers to save precious time during their annual statement.
On the other hand, this simplification should not lead to the release of vigilance. Despite its official nature, the filled form can contain errors or omission. There is still your responsibility to check each line in writing and make the necessary adjustments, as in the case of a 1PB box for tips.
The online statement available from April 10, 2025 offers an intuitive interface to perform these modifications. With a few clicks, you can edit the amounts and make sure your liberated income is properly identified. This attentive approach guarantees that you will not miss the essential savings from your tax statement.