France Tax Compliance Map

Email: par4ww@evershinecpa.com
Manager Christine Yang, speak French, English and Chinese

GLA – France Corporate Income Tax

GLA-FR-01 GLA Tax Entity

Question from client:
Is France corporate income tax a national income tax? A local income tax? Or is there a national and local income tax?
What if the national income tax and the local income tax are levied separately or levied together?
What is the standard tax rate? What is the special tax rate?

Answer from Evershine RD:
Income tax is charged at a national rather than local level.
There are no local income taxes raised at a level of political subdivisions, such as states, provinces, or cantons.
Year 2021:

Year 2022: 25%

A reduced rate of 15% applies to the first 38,120 euros of annual profits of small companies, being those companies
(i) with a turnover not exceeding 10,000,000 euros (7,630,000 euros before 1 January 2021), and
(ii) whose shares are held by individuals or small companies.
A social surcharge is levied at 3.3% of the CIT liability exceeding 763,000 euros.

GLA-FR-02 Registration

Question from client:
Which government unit is responsible for the collection of France’s corporate income tax?
The registration of the country’s corporate income tax status, that is, the tax certificate number application procedure, paper certificate number application? “
Or online account application? URL?
What is the advance certificate number for applying for this certificate number?
Do I need to use the industrial and commercial certificate electronic card to apply?

Answer from Evershine RD:
The tax system in France is administered by the Public Finance Department.
The administrative guidelines were published by the French Tax Administration.
Tax Authority — http://www.impots.gouv.fr
Ministry of Finance — http://www.economie.gouv.fr

Companies usually must register with the Center des Formalités des Entreprises (Centre des Formalités des Entreprises), which is responsible for monitoring the start, modification, and cessation of corporate activities.
According to Article 286 of the General Tax Law, any natural or legal person who needs to pay VAT must submit a new business declaration form within 15 days of starting business in France.
Register the company in accordance with laws and regulations to obtain the company identification code Kbis and the tax number SIREN to submit the annual income tax return.

GLA-FR-03 GLA Order (OD)

Question from client:
What is the order of France corporate income tax return (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays? At the same time as the declaration and payment?

Answer from Evershine RD:
Deposit first (DF). Pay by installment first and declare later.

GLA-FR-04 Mechanism of Filing (MOF)

Question from client:
What is the return method for France’s corporate income tax return (information flow determines the tax base)?
Filing cycle: monthly? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: website URL?

Answer from Evershine RD:
CIT returns (return no. 2065-SD) must be filed no later than the second working day after 1 May for fiscal years aligned with the calendar year or within three months after the end of the relevant fiscal year otherwise.
All French corporations, irrespective of their size, must file returns electronically.
Corporate tax is computed and paid. Payment is staggered over the year and balance (form no. 2572-SD) statements are filed electronically.
Electronic filing is registered through the online platform of the tax authority to log in using SIREN.

GLA-FR-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for France corporate income tax payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:
Pre-paid in 4 installments (March, June, September, and December) (Form No. 2571-SD) and payment of the balance of the CIT payable must be made on the 15th May in the following year.
Pay VAT electronically using the Single Euro Payments Area (SEPA) system.
Electronic payments must go through a bank account at a bank that takes part in the SEPA Business-to-Business Direct Debit Mandate.
Telebanking is only possible for companies using the bank accounts listed under this system.

VAT – France VAT

VAT-FR-01 VAT Tax Entity

Question from client:
Is France VAT national VAT? Local VAT? Or is there a national plus local VAT?
What if the national VAT and local VAT are levied separately or levied together?
What is the standard VAT rate? What is the special VAT rate?

Answer from Evershine RD:
VAT is levied at the national level on goods and services supplied in France.
French VAT law is governed by the French General Tax Code as well as the French Tax Procedure Code.
The French Tax Authority administers and oversees French VAT and publishes official VAT guidelines.
European VAT rules apply in France.
The standard VAT rate applicable amounts to 20%.
The reduced rate is 10%, 5.5% depends on the nature of goods or services.
A special rate of 2.1% is applied to press publications and medicines reimbursed by social security.

VAT-FR-02 Registration

Question from client:
Which government unit is responsible for the levying of VAT in France?
The registration of France’s VAT levy status, that is, the application procedure for VAT certificate number, paper certificate number application?
Or online account application? URL?
What is the advance certificate number for applying for a VAT certificate number?
Do I need to use an industrial and commercial certificate electronic card to apply?

Answer from Evershine RD:
To be granted a French VAT identification number, taxable persons must apply to the Centre for Business Formalities of the district where the taxable person is established.
For foreign entities, applications are filed at the tax office for foreign companies.
To date, VAT registration applications cannot be completed online.
To start a business enterprise in France, every entity must have a “SIRET number.” As part of the registration for a SIRET number, the person is also provided with a VAT registration number. Therefore, French businesses are automatically registered for VAT in France.
On registration, a business is assigned a 13-digit VAT registration number with the following elements: FR (country code) + 2 digits (computer key) + 9 digits (the business’s SIREN number). For example, FR 01 234 567 890.

VAT-FR-03 WWT Order (OD)

Question from client:
What is the order of France’s VAT declaration (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? First declare and then pay?
At the same time as the declaration and payment?

Answer from Evershine RD:
Same Period (SP) – Declare and pay at the same time.

VAT-FR-04 Mechanism of Filing (MOF)

Question from client:
What is the return method for France VAT declaration (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Website URL?

Answer from Evershine RD:
Article 287 of the French General Tax Code provides for a normal and simplified filing regime, each with different filing deadlines.

Normal VAT Regime
Taxpayers liable for VAT must generally file monthly French VAT returns (Form CA3).
The exact day of the month for filing the declaration is established under a national calendar based on taxpayers’ names and registration numbers (generally from the 15^th to the 24^th of each month).
If the annual VAT amount due is less than 4,000 euros, a taxpayer that is registered under the normal regime may file on a quarterly basis.

Simplified VAT Regime

Taxpayers are automatically registered under the Simplified VAT Regime if they meet the following criteria:
*Sales companies, catering establishments or provide housing services, which have an annual turnover that does not exceed 818,000 euros or
*Other service supplies, which have an annual turnover that does not exceed 247,000 euros.
*Lawyers, authors, and performers which have a turnover in the previous calendar year that does not exceed 247,000 euros.
In both cases, the amount of VAT declared in the previous year does not exceed 15,000 euros.
Taxpayers registered under the simplified regime must make an annual VAT declaration (Form CA12) in May.
Annual VAT declaration must be filed no later than the second day after 1 May of the year following the year being reported on.
Taxpayers subject to the simplified VAT regime must pay VAT in advance on a semi-annual basis.
Electronic filing of French VAT returns (Form 3310) and electronic payment of French VAT is compulsory for all taxpayers.

VAT-FR-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for France VAT payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
OCT payment at the bank counter?
Or the above methods coexist?

Answer from Evershine RD:
Normal VAT Regime
Taxpayers that are subject to the Normal VAT Regime are generally required to pay the VAT due monthly.
However, if the VAT due is less than 4,000 euros, a taxpayer may opt to make quarterly payments.
VAT is due on the date when the return is filed.

Simplified VAT Regime
Two biannual installments, in July and December.
The exact deadline differs, depending on the place of taxation, the first letter of the operator’s name, or the identification number assigned by the French authorities to the company.
If the VAT due is less than 1,000 euros, the taxpayer is exempt from the installment payment requirement and must instead pay the full amount at the time the annual declaration is filed.
Pay VAT electronically using the Single Euro Payments Area (SEPA) system.
Electronic payments must go through a bank account at a bank that takes part in the SEPA Business-to-Business Direct Debit Mandate.
Telebanking is only possible for companies using the bank accounts listed under this system.

Please be aware of below Warning:
The above contents are digested by Evershine R&D and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Paris Evershine BPO Service Limited Corp.
Email: par4ww@evershinecpa.com
Manager Zhu, speak in French English and Chinese

or
For how to exchange data files between your Finance Accounting System and Evershine  Cloud Accounting  Information System,
please send an email to HQ4par@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable to your case.
LinkedIn address: Dale Chen

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(version: 2022/03)

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