Domestic employee tax reduction: ceiling on eligible expenses raised to €10,000

Article 8 of the 2003 Finance Act amends Article 199 sexdecies of the General Tax Code. The annual ceiling on expenses for employing a domestic worker, which are eligible for the 50% income tax reduction, rises from €6,900 to €7,400 for 2002 expenses and to €10,000 for expenses incurred from 1 January 2003. The government bill provided for a €10,000 ceiling as early as 2002 expenses; the National Assembly, on the initiative of its finance committee and against the government's opinion, postponed the €10,000 ceiling to 2003 expenses.