The tax representative in France
Appeared in 1955 with the creation of value added tax, the tax representative is an intermediary between the French State and foreign operators, private individuals or legal persons acting in the framework of their economic activities or in the simple management of their assets.
The role of the tax representative in France:
The tax representative is accredited by the French State. He undertakes to fulfill the declaratory obligations incumbent on his client and, in the case of taxable transactions, to pay the tax on his behalf.
The tax representative is responsible in particular for irregularities.
In case of sale of building
The French tax authorities require the appointment of a tax representative in certain real estate sales and securities of predominantly real estate companies in France:
First, for individuals:
- If the sale price is higher than 150,000 euros.
- Even if the sale does not generate any capital gain or is exempt (except for holding more than 30 years.) Where the share held by non-resident partners exceeds 150,000 euros.
Then, for real estate companies (SCI) having their registered office in France:
- If one of the partners is a foreign legal person.
- Finally, for foreign companies in all cases.
Your tax representative can perform the following services:
- Signature of the 2048 IMM form
- Application for accreditation from the competent administrative center
- Calculation of capital gain (data collection, calculation and reporting)
- Follow-up of the file with the administration
- Liability for four years for the capital gain form.
This is the schematic process of tax representation.
Fiscal representation in France