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COVID-19: Summary of the 3rd Amending Finance Act

FBA 3rd Amending Finance Act

The Third Amending Finance Act introduces new fiscal measures following the health crisis. Please find some of them below. As is often the case, it is specified that several of these measures will have to be supplemented by decrees or administrative circulars in order to determine their application modalities.

1/ Deferral of deficits

Tax regulations allow entities subject to corporate income tax to carry forward the deficit for a fiscal year against the profit for the previous year. This allocation gives rise to a claim on the public treasury that can be offset against corporation tax for the following five years. Any remaining balance is automatically reimbursed at the end of these 5 years.

The Third Amending Finance Act makes it no longer necessary to wait five years to obtain repayment of this debt.

However, this option is limited to receivables in inventory and tax loss carryforwards for fiscal years ending December 31, 2020.

The request should be made when the company’s next income statement is filed. However, the conditions of application are yet to be published.

It should be noted that receivables in inventory that have been transferred to a banking institution are excluded from the scheme.

2/ Partial unblocking of Madelin pension contributions

The law of July 30, 2020 allows the partial unblocking of the retirement savings known as Madelin. The maximum possible amount is 8,000 euros. It is specified that the first 2,000 euros are tax-exempt but will be deducted from the amounts allowed as a deduction for the year in question.

In order to benefit from the measure, the self-employed worker must contact his insurer and have completed the complete application process for partial unlocking before December 31, 2020.

3/ Donation of sums of money

A new envelope of 100,000 euros in donations exempt from transfer tax is opened for his descendants.

This envelope concerns exclusively donations of money in full ownership for his children, grandchildren or great-grandchildren (in the absence of descendants, the donation can be made to a nephew or niece).

To be exempt, the amount must be used by the recipient exclusively for one of the following expenses:

  • Creation of a business
  • Energy renovation work
  • Construction of the main residence

4/ Exemption of CFE

Local authorities have the option of reducing the CFE 2020 for two-thirds of its amount.

In order to do so, the local authority must have made a decision to this effect between June 10 and July 31, 2020.

To be eligible for this tax deduction, the company must have a turnover of less than 150 million euros and be in sectors particularly affected by the crisis, namely :

  • Tourism
  • Hotels
  • Catering
  • Air Transportation
  • Sport
  • Culture
  • Events


The exact list, however, has yet to be specified by decree.

The tax deduction only concerns the CFE as such, therefore additional taxes, GEMAPI, CCI, CM, etc. are excluded.

It will automatically apply to the CFE 2020; if this is not the case, a claim can be made until December 31, 2021.

5/ Tax credit for a first press subscription

The first subscription to a newspaper or online news service is eligible for a tax credit.

To be eligible, the subscription must be taken out for a minimum period of 12 months.

The content of the newspaper or press service must be political and general information. Its periodicity must be at most quarterly.

In the case of a grouped online press service, all publications must be exclusively political and general information.

The amount of the tax credit is equal to 30% of the expenditure actually borne by the taxpayer and is granted only once per household until December 31, 2022.

Please note: if the subscription is cancelled, the tax credit is called into question.

Please note, however, that this tax credit can only be applied as of a date to be fixed by decree not yet published.

All our teams remain at your disposal for any further information concerning these measures: do not hesitate to contact us!

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