As an accounting firm based in Lyon, we meet every month to offer you the best of the French tax and accounting news.
04/11/2024 :
Cotisation Foncière des Entreprises (CFE): tax notices are now available online in the professional space on impots.gouv.fr (please note: these will not be sent by mail).
14/11/2024 :
VAT taxpayers involved in intra-community transactions must file the Declaration of Trade in Goods and the European Services Declaration for transactions completed in October.
15/11/2024 :
Employers liable for payroll tax (taxe sur les salaires): payment of tax on salaries paid in October.
30/11/2024 :
Cotisation Foncière des Entreprises (CFE): Last day to choose direct debit payment for the CFE.
To know more…
Falling property interest rates: a boost for construction and home ownership
As of October 2024, property interest rates in France have dropped to an average of 3.46%. This decrease, which began at the end of 2023, is helping households access credit more easily, potentially stimulating property demand, particularly for new builds. For the construction and public works sector, this support is critical, offering prospects for renewed activity following a period of high material costs and tighter financing access. Longer loan terms are also making property financing more affordable. However, high property prices and economic uncertainties continue to dampen demand, limiting the full impact of this rate decline.
Excise duty on energy products: new rules
Starting January 1, 2025, claims for excise duty refunds on energy products (formerly TICPE) for taxi operators, freight transporters, and collective passenger transporters will be centralized by the Directorate General of Public Finances (DGFiP). These claims must be filed electronically with the VAT return, and refunds will be directly offset against VAT due, with any remaining balance refunded. Supporting documents no longer need to be attached but must be retained in case of audit. Claims for consumption up to December 31, 2024, should still be submitted to the DGDDI.
Finance Act and Social Security Financing Act 2025: Key measures to note
Postponement of CVAE Abolition
The 2025 Finance Act proposes delaying the abolition of the Corporate Value-Added Contribution (CVAE) to 2030, originally planned for 2027. This postponement continues gradual rate reductions established in previous finance acts. Consequently, the current rate will be maintained through 2027, with reductions initially set for 2025 and 2026 now scheduled for 2028 and 2029.
LMNP: depreciation to be included in capital gains on property sales
Article 24 of the 2025 Finance Act aims to standardize capital gains calculations for both professional and non-professional furnished renters (LMP and LMNP). Currently, unlike professional renters, LMNPs are not required to include deducted depreciation in their capital gains calculation upon sale. The new measure would require LMNPs to deduct depreciation from the property’s purchase price, potentially increasing the taxable capital gain. If adopted, this change would take effect for sales from January 1, 2025. This reform raises several unresolved tax scenarios, such as business cessation before disposal, a shift to property tax regimes, or the treatment of disposals under the micro-BIC regime. Details on handling these cases are still pending.
Overhaul of employer social contribution reductions
Starting in 2024, the current social security contribution reductions for employers will be scaled back, with a full overhaul planned for 2026 to merge these into a single scheme. This reform aims to simplify and rationalize exemptions, while also reducing their cost to the Social Security system.
Furthermore, specific exemptions for young innovative companies (JEI) and young growth companies (JEC) are expected to end in 2025, which could increase costs for these companies that have previously benefited from contributions recognizing their role in innovation and economic growth.
Lastly, from January 1, 2025, apprentice wages exceeding 50% of the minimum wage will be subject to CSG-CRDS social contributions.
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
+33 (0) 4 78 27 43 06
