In the press sector, managing journalists’ professional expenses is a constant challenge. Between travel, business meals, the purchase of equipment and subscriptions, expenses are many and varied. To reduce the tax burden on journalists and simplify administrative management for companies, the Specific Fixed Deduction (DFS) is an interesting solution. However, its application raises a number of questions and requires a thorough understanding in order to take full advantage of it. This article explores the ins and outs of the DFS in the press sector, highlighting the advantages, constraints and best practices for optimal management.
I. The Specific Flat-rate Deduction (DFS) : definition and applicable rules
The DFS is a tax system that allows journalists, as well as other specific professions listed in the General Tax Code, to deduct a flat-rate portion of their gross salary to compensate for their professional expenses. In 2024, this deduction rate is 28% for journalists, but it is being phased out and will disappear completely in 2038.
Conditions of eligibility :
- Hold a press card (for journalists) or practise an eligible profession listed in the General Tax Code.
- Working as an employed or self-employed journalist. Freelance journalists are also eligible for the DFS.
- Actually incurring business expenses. Although it has not been compulsory to justify expenses since 2023, it is essential to be able to prove the professional nature of expenses in the event of a tax audit.
Limits and exclusions :
- Annual cap on DFS :
- €7600 for 2023.
- This limit is not adjusted and gradually decreases with the rate of allowance until it is abolished in 2038.
- Expenses excluded from the DFS or subject to caps :
- Commuting costs (with exceptions such as night taxis)
- Current documentation not archived by the company
- Gifts (excluding Christmas gifts)
- Telephone and internet subscriptions (capped at 50% of the amount and €91 per year)
- Home receptions
- 50% of meal expenses (up to €915 per year)
- Taxi fares (capped at €1.50 per day, excluding night taxis)
- 10% of the reimbursement of the cost of using a private vehicle (excluding home-work journeys)
- Limits on inclusion in the social security contributions base :
- €1,905 per year, when salary does not exceed €763 per month
- €3,430 per year, when salary exceeds €763 per month
II. DFS or reimbursement of expenses : a strategic choice for the company and the journalist
Since 1 January 2023, a major change has taken place : it is now possible to combine the DFS with the reimbursement of professional expenses. This new feature offers a degree of flexibility, but does not simplify the decision between these two options, which remains a strategic one for both the journalist and the company.
The DFS is attractive because of its simplicity and immediate tax savings. It is also attractive because there are no detailed supporting documents to provide and income tax is reduced directly. This is an undeniable advantage, particularly for journalists on variable incomes or with expenses that are difficult to justify.
However, there are disadvantages to consider. The DFS leads to a reduction in social security contributions, which can have a long-term impact on pension rights and unemployment benefits. In addition, there is a ceiling on the allowance, which limits its benefit for journalists with high incomes. Finally, it should be borne in mind that the DFS is gradually being phased out, with the rate falling each year until it is abolished altogether in 2038.
The reimbursement of actual expenses, on the other hand, offers full coverage of justified professional expenses, in line with the spending policy defined by the media outlet, thus preserving the journalist’s social rights. This is a particularly attractive option for those who incur high and easily justifiable expenses, such as major reporters travelling abroad.
However, this solution entails heavier administrative management, with the need to collect and submit supporting documents for each expense. Reimbursement times can also be an obstacle for some journalists.
From the employer’s point of view, the DFS may seem advantageous because it reduces employers’ social security contributions and simplifies administrative management. However, it may also have a negative impact on the motivation and loyalty of journalists, who may feel less supported in their professional spending. What’s more, the risk of demands for salary compensation to offset the reduction in social security rights should not be overlooked.
III. Accounting management of the DFS and expense reimbursements
The accounting management of the Specific Fixed Deduction (DFS) and reimbursements of professional expenses requires particular attention from journalists and media companies. It is essential to maintain rigorous accounting records and to distinguish clearly between different types of expenditure to ensure tax and social security compliance.
On the journalist’s side, this means keeping all receipts for expenses, even those not reimbursed by the employer. This traceability is crucial to justify the application of the DFS in the event of a tax audit, even if the presentation of receipts is no longer compulsory since 2023. It is also important to make a clear distinction between reimbursable expenses and those that can be taken into account when calculating the DFS. Some expenses, such as home-to-work travel or part of meal expenses, may be excluded from the DFS even if they are not reimbursed. This distinction is essential to avoid errors and omissions in the tax return, and therefore the risk of a tax reassessment.
On the employer’s side, accounting management requires great precision. The DFS deduction, which is currently 28% for 2024, must be correctly applied to the journalist’s gross salary, after deduction of reimbursed expenses. Social security contributions must then be calculated on this deducted gross salary, which means that pay slips must be adapted to reflect the exact amount of contributions due. The Déclaration Sociale Nominative (DSN) must also be adjusted to take account of the application of the DFS and the amount of expenses reimbursed, using the appropriate codes. Lastly, companies must include all data relating to expense claims and the DFS in their tax returns, taking care to comply with the ceilings and exclusions specific to this system, such as the annual ceiling for the DFS or the limits on the inclusion of certain reimbursed expenses in the social security contributions base.
IV. Simplify expense claim management with dedicated software
Given the complexity of managing expense reports in the press sector, specialised software can be a major asset. Among other things, it will enable you to track expenses incurred during reports abroad, as well as :
- Automate the collection and processing of expense claims
- Managing the specific needs of journalists (employees, freelancers, self-employed, with or without DFS)
- Monitor spending in real time and ensure compliance with company policies
- Facilitating communication between journalists and the accounts department
- Generate detailed reports for payroll and tax returns
The specific flat-rate deduction is an interesting tax tool for journalists, but its implementation requires rigorous management of expense accounts. By adopting good practice and relying on effective tools, media companies can optimise their accounting and tax management, while offering their journalists a calm working environment conducive to their professional development.
