Newsletter February 2024

5 February 2024

As an accounting firm based in Lyon, we meet every month to offer you the best of the French tax and accounting news.

cabinet expertise comptable lyon

12/02/2024

Companies subject to VAT – Deadline for :

  • the European declaration of services for intra-Community transactions carried out in January 2024.
  • the Declaration of trade in goods for intra-Community transactions carried out in January 2024.

 

15/02/2024

  • Payroll tax : Payment of tax on salaries paid in January.

  • Companies subject to corporate income tax : Deadline for payment of corporation tax balance for companies that have closed their fiscal year on October 31, 2023.

  • IFU (Imprimé Fiscal Unique) : Deadline for filing IFU tax returns covering all income from investments and securities transactions in the previous calendar year.

  • Tax payable by employers of foreign workers (see below) : Declaration and payment of this annual tax on appendix 3310 A of the VAT return.

REMINDER

Amortization of goodwill (fonds de commerce)

As a reminder, by way of derogation, depreciation applied to business capital acquired between January 1st 2022 and December 31st 2025 is tax deductible. However, depreciation of goodwill acquired from an affiliated company or a sole proprietorship controlled by the same beneficial owners is expressly excluded from the scheme.

To know more…

Towards a review of mortgage applications

Faced with an increasing number of rejected applications, and in response to pressure from the Banque de France, the Fédération Bancaire Française has agreed that certain property investors whose applications for financing have been turned down can ask for their applications to be reconsidered if they feel that the rejection was unjustified. This opportunity will only be available to solvent households, i.e. those who have not reached the maximum effort rate set at 35% of their income. Unfortunately, this is one of the main reasons why applications are rejected.

cabinet expertise comptable lyon

Transfer of premises for conversion into housing

Legal entities subject to corporate income tax that sell office premises, commercial premises or building land with a view to converting them into housing, benefit from a reduced corporate income tax rate of 19% (compared with the standard rate of 25%) on the net capital gain realized on the transaction.

This scheme, which was due to expire on December 31, 2023, has been extended to December 31, 2026.

 

Tax payable by employers of foreign workers

Since January 1er 2023, the DGFiP has been responsible for managing and collecting this tax (art. L. 436-10 CESEDA), which was previously the responsibility of the French Office for Immigration and Integration (OFII).

It must be declared and paid annually, in arrears. It will be due for new hires made during the course of a year, and declared and paid with the VAT return for February of the following year.

The tax is based on the gross monthly salary paid to the foreign worker hired, up to a limit of 2.5 times the minimum growth wage (SMIC).

When hiring for a period of twelve months or more, the tax rate is 55%.

Where the period of employment is less than or equal to twelve months, the amount of the tax is set as follows:

  • 74 euros if gross monthly salary is less than or equal to the monthly full-time minimum wage (SMIC)
  • 210 euros if gross monthly salary is between 1 and 1.5 times the monthly full-time minimum wage (SMIC)
  • 300 euros if gross monthly salary exceeds 1.5 times the monthly full-time SMIC.

NEWS

Two new bilateral tax treaties signed with Denmark and Greece

After almost 15 years without a tax treaty with Denmark, the new bilateral tax treaty came into force on January 1st 2024.

The bilateral agreement between France and Greece had been in force since 1963, but was based on an old model and needed updating.

 

Non-resident furnished renters : Government clarification

Senator Mrs Evelyne Renaud-Garabedian had asked the government about the non-professional / professional status of non-resident furnished-rental property owners, and whether foreign-source income should be taken into account when assessing the preponderance of income from furnished-rental property over the taxpayer’s other business income.

The French Ministry of the Economy replied on January 4: […] when a non-resident user receives income from the furnished rental of a residential property in an amount exceeding 23,000 euros, and his only French-source income as mentioned in paragraph 2 of article 155 IV-2 of the French Tax Code subject to income tax in France is less than the income from the furnished rental activity, then the activity must be qualified as “professional” […]“.

This ministerial response confirms the tax doctrine, which had already clarified this status (BOI-BIC-CHAMP-40-10): “For non-residents, the preponderance of income is assessed by taking into account all the income of the taxpayer and, more broadly, of the tax household, provided that this income is taxable in France under French tax legislation and, where applicable, international tax treaties. Income received by non-residents that is taxable only abroad is not taken into account.

The Team Roche & Cie

Professionals or individuals, French or international, since 1948, Roche & Cie has been assisting clients from all horizons.

contact@cabinet-roche.com 
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