As an accounting firm based in Lyon, we meet every month to offer you the best of the French tax and accounting news.
13/01/2025 :
- VAT taxpayers carrying out intra-Community transactions: deadline for filling the declaration of trade in goods and the European declaration of services for transactions carried out in December.
15/01/2025 :
- Employers liable for payroll tax (companies exempt from VAT): payment of tax on salaries paid in December OR on salaries paid in 2024 for employers subject to annual declaration.
- Corporation tax balance: payment 2024 of the corporation tax balance for companies having closed their fiscal year on September 30, 2024.
- Annual Axle tax: between January 16 and 24: submission and payment of appendix 3310 A for taxpayers subject to the normal VAT system.
25/01/2025 :
Tax on company cars :
- For taxpayers subject to the normal VAT taxation system (monthly or quarterly) or not liable for VAT: the tax must be be declared on appendix n° 3310A to the VAT return to be filed during the month of January. Companies not liable for VAT have until January 25 to declare the tax on CO2 emissions;
- For taxpayers subject to the simplified VAT regime (annual declaration), the tax for 2024 must be declared on Form No. 3517, which must be submitted for the fiscal year during which the tax became due.
To help you determine the amount of these taxes, a calculation aid (form no. 2857-FC-SD) is available on the Ministry’s “impots.gouv.fr” website.
To know more…
CAC 40: €98 billion redistributed in 2024, a Record
In 2024, CAC 40 companies reached a historic milestone by redistributing €98.2 billion to their shareholders, a figure that includes both dividends and share buybacks. This record represents an increase of approximately 1% compared to 2023, with dividends rising by 8.5%, amounting to a total of €72.8 billion. Leading this redistribution were TotalEnergies, LVMH, and Stellantis, which played key roles in achieving this performance. At the same time, investments made by these companies surged by 22%, reaching €116.6 billion, demonstrating that their generosity towards shareholders did not hinder their development projects. This record highlights the robust financial health of CAC 40 groups and their ability to balance shareholder returns with strategic investments.
Job abandonment: the French Council of State clarifies the rules on presumption of resignation
On December 18, 2024, the French Council of State issued a key decision clarifying the application of the presumption of resignation in cases of job abandonment. This mechanism, introduced by the law of December 21, 2022, and detailed in the decree of April 17, 2023, now strictly regulates the rights and obligations of employers and employees in such situations.
The Council confirmed the validity of the mechanism while emphasizing a critical requirement: employers must explicitly inform employees, through a formal notice, of the specific consequences of prolonged absence without legitimate justification. This formal notice, sent by registered letter or delivered in person, must grant a minimum of 15 calendar days for the employee to justify their absence or return to work.
If the employee fails to act within this timeframe, the job abandonment will be presumed to constitute a resignation. However, specific circumstances may justify the employee’s absence, such as medical reasons, the right to strike, or the refusal to comply with instructions that violate regulations. In such cases, the presumption of resignation cannot apply.
The decision also highlights the pivotal role of labor courts (prud’hommes), which are empowered to rule promptly in case of disputes. Judges must ensure that the procedure was properly followed and assess the legitimacy of the employment contract termination.
By clarifying these obligations, the Council of State aims to ensure a fair application of the presumption of resignation while safeguarding the rights of both parties. Employers and employees must therefore strictly adhere to legal procedures in cases of job abandonment to avoid significant consequences.
New value-sharing obligations in companies starting January 1, 2025
Starting January 1, 2025, companies with 11 to 49 employees will be required to establish a value-sharing mechanism if, for three consecutive fiscal years, they achieve a net taxable profit of at least 1% of their revenue.
Who is affected?
This measure applies to companies not subject to mandatory profit-sharing but meeting the criteria for headcount and profitability.
Available options
To comply with this obligation, employers have several solutions at their disposal:
- Voluntary profit-sharing: Implementation of a profit-sharing agreement.
- Incentive bonuses: Payment of bonuses tied to company performance.
- Contributions to employee savings plans: Payments into PEE, PEI, Perco, or Pereco plans.
- Value-sharing bonus (PPV): Direct payment of an exceptional bonus to employees.
No direct penalty
The obligation applies to fiscal years beginning in 2025, based on profits earned between 2022 and 2024. Companies already implementing a value-sharing mechanism are deemed compliant.
However, no specific penalties are planned for non-compliance. This measure is primarily designed to encourage fair profit redistribution and strengthen employee engagement.
Tax and social treatment of the value-sharing bonus (PPV) in 2025
In 2025, the value-sharing bonus (“Prime de Partage de la Valeur” – PPV) maintains favorable tax and social benefits for companies with fewer than 50 employees.
Tax treatment
The PPV is exempt from income tax if paid to employees who, during the previous 12 months, earned less than three times the minimum wage (Smic). If the bonus is allocated to an employee savings or retirement plan (e.g., PEE, Perco), it remains tax-exempt regardless of the recipient’s income.
Social treatment
The bonus is also exempt from social security contributions for both employees and employers, up to €3,000 per beneficiary per year. This limit increases to €6,000 if the company has implemented a profit-sharing or incentive agreement.
Key considerations for employers
To maximize tax and social benefits, employers are encouraged to consider employee savings plans such as PEE or Perco. These solutions not only optimize exemptions but also strengthen long-term employee engagement.
The Team Roche & Cie
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