Volontaire International en Entreprise (VIE)

Volontaire International en Entreprise (VIE)

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Hi - just wondering if someone has come across this in practise. It's a French government intern-ship system whereby graduates are seconded overseas to subsidiaries of French multinational companies. The intern has no contractual link with either the French company or the subsidiary where they are seconded to - the arrangement is between the intern and a French government agency. The French government agency pays the intern an allowance in France and this is re-charged to the French company (there is no recharge to the subsidiary of the French company where the intern is "working").

I have the situation of one such graduate doing an internship for a UK subsidiary for a period of 12 months and just want to be 100% sure on the PAYE and NI implications of the allowance that he receives in France. It appears that PAYE and NI don't apply however I am not entirely sure on what basis - perhaps the government service or student (business apprentice) clauses of the treaty? Has anyone dealt with this before and can they clarify?

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By Portia Nina Levin
30th Jul 2015 10:29

This is the same point you asked yesterday
You say there is no contractual link, which means there is no employment. No employment means no employer obligations. Are you really sure you should be taking on this work?

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Replying to SXGuy:
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By charlb
30th Jul 2015 11:14

Hi Portia - this is a different intern to yesterday, and they are not receiving an accommodation allowance in the UK, but are being "paid" an allowance of approx €2,500 in France per month under the VIE scheme. There is no written contract between the intern and the UK company, but could there not be an implied contract - after all this person is turning up from 9 to 5 and receiving money in France (which may or may not exceed relevant expenses) and in return they are "working" in the UK company. Apparently this VIE placements are quite common hence I wondered if anyone else has come across them? Thanks.

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By WhichTyler
30th Jul 2015 13:41

Ask the Embassy

Google translate says:

The administrative and legal management of VIE is delegated to France Business that deals for you the contractual aspects, the payment of compensation and social protection of the volunteer.VIE formula exempts your company from any direct contractual relationship (the contract is signed between France and the Business young volunteer). Enjoying a public status, the volunteer is under the administrative supervision of the Economic Mission of the Embassy of France in their country of assignment. You pilot course in direct operational activity

 

so if you ask the business desk of the french embassy, they may be able to reassure about how this works wrt NMW, tax residency, etc

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Replying to bernard michael:
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By User deleted
30th Jul 2015 16:43

.

WhichTyler wrote:

Google translate says:

 

That's all we need

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Replying to Tax Dragon:
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By WhichTyler
30th Jul 2015 17:35

Si vous preferez...

La gestion administrative et juridique du V.I.E est déléguée à Business France qui s’occupe pour vous des aspects contractuels, du versement des indemnités et de la protection sociale du volontaire. La formule V.I.E exonère votre entreprise de tout lien contractuel direct (le contrat est passé entre Business France et le jeune volontaire). Bénéficiant d’un statut public, le volontaire est placé sous la tutelle administrative de la Mission Economique, près l’Ambassade de France dans son pays d’affectation. Vous pilotez bien sûr en direct son activité opérationnelle.

 

http://export.businessfrance.fr/formule-vie/vie-en-bref.html

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By User deleted
30th Jul 2015 20:29

Thank you!
Whilst I appreciate the beautiful language of the French, the point I was trying to make was that in the past, in my experience, google translate has proved somewhat unreliable.

Perhaps the client in question would be better served by a French tax advisor, to avoid such mistranslations and the headache that ensues?

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