2041-AE certificate: overtime for cross-border workers
As for French residents working in France, it is possible for certain frontier workers to benefit from a tax exemption for part of the overtime worked.
Under what conditions can a frontier worker benefit from tax exemptions on overtime?
A frontier worker can benefit from tax exemptions on overtime in the following cases:
- He worked in one of the following cantons: Vaud, Valais, Jura, Neuchâtel, Bern, Solothurn, Basel-City and Basel-Country (cantons benefiting from the agreement of 11 April 1983)
- he has worked more than 1840 hours in the year on a full-time basis. As the number of hours worked in Switzerland is on average higher than 40 hours (for full-time contracts), most cross-border workers in these cantons will have exceeded this limit and will be able to claim an overtime exemption. Overtime is therefore likely to have an impact on the taxation of frontier workers.
In this case, the frontier worker can claim an exemption for the hours exceeding these 1840 hours, for a maximum exemption of 368 hours.
Important: if he has worked part-time, the pro-rata must be calculated. For example, for a 70% employee, tax exemptions are possible beyond 1,288 hours.
What is the procedure for benefiting from the tax exemption for overtime?
- Download the 2041-AE form "Attestation employeur - Heures supplémentaires exonérées des travailleurs frontaliers conventionnellement imposables en France" (Employer's certificate - Exempt overtime for cross-border workers taxable in France)
- Have your employer fill in the form (including the total number of hours worked, the percentage of working time, the contractual duration of working time, the number of overtime hours worked beyond") and have it signed
- Complete it with your personal information (in particular the net taxable income in euros)
- Attach the document to the tax return
If you have any questions about this document or require assistance with your French tax return, please do not hesitate to contact us