Finance act for 2020: Main provisions concerning personal taxation

Like each year, the French finance law has been amended for 2020. So that you can see it more clearly, we have chosen to present you today some of the main measures adopted. The provisions presented relate to the taxation of individuals and also the local taxes. We will explain in our next article the specific measures concerning companies. We hope that will interest and help you!

FINANCE ACT FOR 2020: MAIN PROVISIONS CONCERNING PERSONAL TAXATION 14/02/2020 We present below some of the main measures adopted in the French finance law for the year 2020.… more

The cost of social regime in France since the universal health protection (PUMA)

You have just settled in France and do not exercise a professional activity there, or an insignificant one, and you are wondering what would be your social cover ?

THE COST OF SOCIAL REGIME IN FRANCE SINCE THE UNIVERSAL HEALTH PROTECTION (PUMA) 31/01/2020 A certain number of people who settle in France and do not exercise a professional… more

Travel expenses deductible from the tax result of companies

Travel costs are in principle deductible insofar as they have been incurred in the interest of business. We will see the specific rules that exist however for certain categories of trips.

TRAVEL EXPENSES DEDUCTIBLE FROM THE TAX RESULT OF COMPANIES 15/01/2020 Travel costs are in principle deductible insofar as they have been incurred in the interest of business… more

Gifts in business - Tax and social consequences

We are now all preparing the Christmas season and as you know, at this time it is customary in many companies to give gifts to people in business relationships or to employees. So we wanted to recapitulate, through this article, the consequences of these gifts on the determination of the tax result as well as on the recovery of VAT for these two gift categories. Also, for the gifts to employees, we will observe the effects on social contributions.

GIFTS IN BUSINESS - TAX AND SOCIAL CONSEQUENCES At the end of the year, it is customary in many companies to give gifts to people in business relationships or to employees… more

Vehicle Tax on Companies (T.V.S.)

Most companies that own or use vehicles of a certain category, which we are going to define, must declare and pay an annual tax each year during the month of January.

VEHICLE TAX ON COMPANIES (T.V.S.) Most companies that own or use vehicles of a certain category, which we are going to define, must declare and pay an annual tax each year… more

VAT deduction : the conditions to be met to exercise it

The VAT deduction is only possible if the good or service has been acquired as part of an economic activity (usually a business) situated in the scope of VAT. The said good or service must of course not be excluded from the right of deduction. The taxpayer must also meet three cumulative conditions provided for by the general tax code (Article N ° 271).

VAT DEDUCTION : THE CONDITIONS TO BE MET TO EXERCISE IT The VAT deduction is only possible if the good or service has been acquired as part of an economic activity (usually… more

Title Private Employer Foreign (Titre Particulier Employeur Etranger - TPEE)

This title concerns non-resident persons who wish to employ a private employee for direct services to people activities. These people can join the TPEE to simplify the formalities.

TITLE PRIVATE EMPLOYER FOREIGN (TITRE PARTICULIER EMPLOYEUR ETRANGER – TPEE) This title concerns non-resident persons who wish to employ a private employee for direct… more

Repatriated employees : exemption from affiliation to French pension schemes

The decree 2019-606 of June 118th 2019 allows employees repatriated in France (which we will call now "impatriés") to be temporarily exempted from joining basic and complementary French pension plans.

REPATRIATED EMPLOYEES:

EXEMPTION FROM AFFILIATION TO…

After briefly defining the economic activities concerned by agricultural taxation, we will discuss the following points: - The various tax systems in agriculture, - Agricultural VAT systems, - Turnover tax and property tax.

GENERAL INFORMATION ON AGRICULTURAL TAXATION

After briefly defining the economic activities concerned by… more

Create a business in France in 2019

The creation of an economic activity is often a complicated operation. It must be carefully prepared because it engages the businessman for many years. We wish to summarize below the main stages of creation by referring you to the various articles that we have already published on the subject.

CREATE A BUSINESS IN FRANCE IN 2019

The creation of an economic activity is often a complicated operation. It… more

Notice of taxation on income in France

NOTICE OF TAXATION ON INCOME IN FRANCE French taxpayers will soon receive their income tax notice (between July 24th and August 7th). This document is very important because… more

Two subjects of news about taxes

Among these two topics, the first will concern investors in rental property located in the city centers and the second concerns all French residents with at least one bank account abroad.

TWO SUBJECTS OF NEWS ABOUT TAXES: --> TAX REDUCTION NAMED "DENORMANDY" ON REAL ESTATE INVESTMENT --> TEN YEARS OF RECOVERY FOR NON-DECLARATION OF ACCOUNT ABROAD … more

Main relief to the creation of Businesses

There are a very large number of helpers for entrepreneurs. We cannot quote them in their entirety, but the list of the main help below can be useful if you aim to start a business in France...

MAIN RELIEF TO THE CREATION OF BUSINESSES There are a very large number of helpers for entrepreneurs. We cannot quote them in their entirety, but the list of the main help… more

Non-Professional Furnished Rental

NON-PROFESSIONAL FURNISHED RENTAL Non-professional furnished rental meet a precise definition and are subject to a particular tax and social regime. We will briefly describe… more

The steps of hiring an employee in France

Below you will find the main formalities to be accomplished when hiring an employee in France from the recruitment phase to the establishment of the pay slip at the end of the first work period.

THE STEPS OF HIRING AN EMPLOYEE IN FRANCE Below you will find the main formalities to be accomplished when hiring an employee in France from the recruitment phase to the… more

Deductible expenses of benefits of companies in France

Below is an inventory of the main expenses that companies subject to the Industrial and Commercial Benefits (B.I.C.) or corporate income tax in France can deduct to determine their taxable income.

DEDUCTIBLE EXPENSES OF BENEFITS OF COMPANIES IN FRANCE Below is an inventory of the main expenses that companies subject to the Industrial and Commercial Benefits (B.I.C.) or… more

The Payslip in France : its description

The pay statement is, for many people, difficult to interpret. The problem is even more important for business leaders who do not speak French.

THE PAYSLIP IN FRANCE : ITS DESCRIPTION The pay statement is, for many people, difficult to interpret. The problem is even more important for business leaders who do not speak… more

Main categories of revenues to be declared on annual forms

The reporting period for annual revenues begins and it seems useful to give a brief reminder of the various income and tax deductions that may be included in these returns. The forms are three in number, they must be sent to the French administration by the website: impots.gouv.fr.

MAIN CATEGORIES OF REVENUES TO BE DECLARED ON ANNUAL FORMS N° 2042 C, 2042 RICI AND 2042 C-PRO The reporting period for annual revenues begins and it seems useful to give a… more

Direct Services for people and home services

The sector of direct services to people is expanding, it includes activities related to the assistance of people in their homes. These services concern: • Family services, • The services of everyday life, • Services to people who need special help to perform the tasks of daily life (disabled elderly etc ...)

DIRECT SERVICES FOR PEOPLE AND HOME SERVICES The sector of direct services to people is expanding, it includes activities related to the assistance of people in their homes… more

Finance Act for 2019 : main provisions concerning Companies

The second part of this finance law is devoted to the provisions concerning companies. We will limit ourselves through this article to summarize the major measures of this text. You can of course ask us for clarifications.

FINANCE ACT FOR 2019 : MAIN PROVISIONS CONCERNING COMPANIES The second part of this finance law is devoted to the provisions concerning companies. We will limit ourselves… more

Professional training in companies in the tax aspect

The purpose of this article is to present the two taxes that companies are liable to and which are intended to ensure the financing of training. These are: The apprenticeship tax and the contribution to vocational training.

PROFESSIONAL TRAINING IN COMPANIES IN THE TAX ASPECT The purpose of this article is to present the two taxes that companies are liable to and which are intended to ensure the… more

Finance act for 2019 : Main provisions concerning personal taxation

This year we are again presenting the most important provisions of the Finance Act in two parts: • Personal taxation: Presented in this article, • Corporate taxation, which will be published in a future article at the end of February. An important measure of this finance law, the introduction of withholding tax, has already been the subject of two articles, so we will not develop it here. Please, refer to these articles, here are the links: The withholding tax system/ News about the withholding tax system.

FINANCE ACT FOR 2019 : MAIN PROVISIONS CONCERNING PERSONAL TAXATION This year we are again presenting the most important provisions of the Finance Act in two parts:… more

News about the withholding tax system

We published during June 2018 an article on the WITHHOLDING TAX SYSTEM (in French "Prélèvement à la source" or P.A.S.) in anticipation of its implementation in January 1st 2019. This process is now being implemented, and many details have been provided by the administration since our last publication...

NEWS ABOUT THE WITHHOLDING TAX SYSTEM IN FRANCE We published during June 2018 an article on the WITHHOLDING TAX SYSTEM (in French "Prélèvement à la source" or P.A.S.) in… more

Exemption from "CSG-CRDS" on assets income and investment products for certain foreign persons

In a famous court affair (The DE RUYTER case), the European Court of Justice and the French State Council challenged the legality of the "CSG-CRDS" on assets incomes and investment products prior to the year 2016.

EXEMPTION FROM "CSG-CRDS" ON ASSETS INCOME AND INVESTMENT PRODUCTS FOR CERTAIN FOREIGN PERSONS In a famous court affair (The DE RUYTER case), the European Court of Justice and… more

Business obligations for death insurance and complementary health insurance

Employers are required to put in place a group death and disability benefit plan for executives (Prévoyance). In other situations, the creation of a supplementary company pension plan is optional, unless it is imposed by a branch agreement or a collective agreement. However, since January 1st 2016, all employees must be covered by a complementary health plan.

BUSINESS OBLIGATIONS FOR DEATH INSURANCE AND COMPLEMENTARY HEALTH INSURANCE

… more

Tourist Tax

TOURIST TAX Municipalities can ask holidaymakers staying in their territory to pay a tourist tax. However, the municipality is authorized to exempt certain categories of… more

The life of a business in France

Knowledge of the product, the market, an innovative idea, a concept of values, an image ... you may think that it is enough to start a business and that this is simple!

THE LIFE OF A BUSINESS IN FRANCE Knowledge of the product, the market, an innovative idea, a concept of values, an image ... you may think that it is enough to start a business… more

Deadlines for the declarations and payments the social contributions of companies in France

We propose below an agenda for a year by specifying the deadlines for the declaration and payment of various social contributions concerning companies.

DEADLINES FOR THE DECLARATIONS AND PAYMENTS THE SOCIAL CONTRIBUTIONS OF COMPANIES IN FRANCE We propose below an agenda for a year by specifying the deadlines for the declaration… more

Tax Deadlines of companies in France

We propose below an agenda for a year by specifying the deadlines for the declaration and payment of various taxes concerning companies.

TAX DEADLINES OF COMPANIES IN FRANCE

We propose below an agenda for a year by specifying the… more

Taxe d'Habitation and Taxe Foncière / Property taxes

The owners of a professional or residential building in France receive at this time a notice of "TAXE FONCIERE". Similarly, people occupying a home will soon receive a notice of "TAXE D’HABITATION". We will give you some details about the main features of these two taxes.

THE ESSENTIAL ELEMENTS TO UNDERSTAND THE “TAXE FONCIERE” AND THE “TAXE D’HABITATION”

The owners… more

The Main Formalities to set up a business in France

France is renowned for its complexity in legal matters when setting up a company. We’ll try to explain clearly the main steps to follow for the installation of a company. Here we can only develop the most common procedures knowing that it will vary along with the cost depending on your personal situation, the planned activity and the project.

THE MAIN FORMALITIES TO SET UP A BUSINESS IN FRANCE

… more

The Micro Company - Micro Entreprise

Very small businesses subject to income tax can benefit from the "MICRO FISCAL" and "MICRO SOCIAL" schemes. We indicate below as well as the main characteristics of this scheme as well as the conditions to benefit from it.

THE MICRO COMPANY - MICRO ENTREPRISE Very small businesses subject to income tax can benefit from the "MICRO FISCAL" and "MICRO SOCIAL" schemes. We indicate below as well as… more

Foreign Firm Slip / Titres Firmes Étrangères (T.F.E.)

T.F.E. is an optional service for foreign companies that employ in France and do not have any establishments in that country. This device is only intended to simplify the social formalities related to the employment of workers for these companies.

FOREIGN FIRM SLIP / TITRES FIRMES ETRANGERES (T.F.E) T.F.E. is an optional service for foreign companies that employ in France and do not have any establishments in that country… more

Declaration of Exchanges of Goods (DEB) and European Declaration of Services (DES)

Trade within the E.E.C. is free, without formalities and without border controls. However, companies are required to provide customs services monthly with a Goods Exchange Declaration (D.E.B.) for the exchange of goods or a European Service Declaration (D.E.S.) for trade in services. This formalism allows the administration to compile statistics and track intra-Community flows, especially for T.V.A.

DECLARATION OF EXCHANGES OF GOODS (DEB) AND EUROPEAN DECLARATION OF SERVICES (DES) Trade within the E.E.C. is free, without formalities and without border controls. However,… more

French Transition to the “Pay-As-You-Earn” Withholding Tax System

From 2019, the "Prélèvement à la source" (P.A.S.) will be applied to almost all the income of French taxpayers. This concerns people in activity (employees or self-employed) as well as retirees. To date, taxpayers are taxed on income earned the year before. From 2019 the tax will be directly deducted by the employer or the paying agency at the time of the payment of the income to the taxpayer.

FRENCH TRANSITION TO THE "PAY-AS-YOU-EARN" WITHHOLDING TAX SYSTEM From 2019, the "Prélèvement à la source" (P.A.S.) will be applied to almost all the income of French taxpayers.… more

The Balance Sheet in French Standards translated into English

In our previous article, we produced a profit and loss account translated into English to make it easier for English-speaking managers to read a company's accounting documents. Our information would be incomplete if it was limited to this one document, this is why we are now publishing a balance sheet presented to French accounting standards translated into English.

THE BALANCE SHEET IN FRENCH STANDARDS TRANSLATED INTO ENGLISH In our previous article, we produced a profit and loss account translated into English to make it easier for English… more

The Profit and Loss Account in French Standards translated into English

We have established below a standard income statement with the most common items with their translation into English

THE PROFIT AND LOSS ACCOUNT IN FRENCH STANDARDS TRANSLATED INTO ENGLISH English-speaking managers who run French companies or establishments of foreign companies located in… more

Some Legal or Fiscal terms commonly used in France and their translation in English

To help Anglophone investors better understand French law, we will try to give a translation as expressive as possible of some legal terms in three areas: Tax, Company law, Social right. The translations will be supplemented by links that will lead you directly to the articles already published (if any) on our website that deal with the subject concerned.

SOME LEGAL OR FISCAL TERMS COMMONLY USED IN FRANCE AND THEIR TRANSLATION IN ENGLISH To help Anglophone investors better understand French law, we will try to give a translation… more

Taxes in France

TAXES IN FRANCE

There are a large number of different taxes in France. We will briefly introduce the most common.

We can classify them into… more

Setting up a Small Business in France

The creation of a small business in France involves many choices that the creator must make at the time of incorporation. These choices are mainly at three levels: Legal (company structure), Fiscal, Social (status of the entrepreneur).

SETTING UP A SMALL BUSINESS IN FRANCE The creation of a small business in France involves many choices that the creator must make at the time of incorporation. These choices are… more

Tax on Real Estate Fortune (Impôt sur la Fortune Immobilière)

This is a new wealth tax that applies to people with real estate assets worth more than € 1,300,000. It enters into force as from 1 January 2018. In return, the I.S.F. has just been removed.

TAX ON REAL ESTATE FORTUNE This is a new wealth tax that applies to people with real estate assets worth more than € 1,300,000. It enters into force as from 1 January 2018. In… more

The regulations on the cash register softwares

New rules on cash register software are applicable since January 1st 2018 to all VAT taxable persons. First, we need to define a cash register software: It is a computerized system in which a taxable person records deliveries of goods or services that are not billable. It is therefore a computerized system where the taxable person records transactions with his non-taxable customers.

THE REGULATIONS ON THE CASH REGISTER SOFTWARES New rules on cash register software are applicable since January 1st 2018 to all VAT taxable persons. First, we need to define a… more

The French Finance Act For 2018 - Individuals changes

The great novelties of the finance law for 2018 are: The establishment of a uniform tax rate on income from savings and capital gains on securities and the tax relief on the “housing tax”

THE FRENCH FINANCE ACT FOR 2018 - INDIVIDUAL CHANGES The great novelties of the finance law for 2018 are: The establishment of a uniform tax rate on income from savings and… more

The French Finance Act For 2018

The Finance Act for 2018 and the two amended Finance Acts for 2017 provided for new provisions of interest to companies.

THE FRENCH FINANCE ACT FOR 2018 The Finance Act for 2018 and the two amended Finance Acts for 2017 provided for new provisions of interest to companies. Certain provisions are… more

Principles of VAT Taxation of services in Europe

PRINCIPLES OF VAT TAXATION OF SERVICES IN EUROPE Intra-European services are divided into two broad categories: Services performed between taxable persons (B to B) located in… more

Vat and intra-Community Trade in goods and other furniture

The European Union is an area without borders. Thus, the concept of import or export disappears when it comes to the exchange of goods from one country to another within the EEC.

VAT AND INTRA-COMMUNITY TRADE IN GOOD AND OTHER FURNITURE The European Union is an area without borders. Thus, the concept of import or export disappears when it comes to the… more