As an accounting firm based in Lyon, we meet every month to offer you the best of the French tax and accounting news.
05/03/2024
Subscription deadline :
- the income tax return for the year ending 12/31/2023 for companies subject to corporation tax (form 2065) and individual businesses subject to income tax (BIC, BNC, BA),
- 2072 returns for SCIs
An additional 15 days are allowed for online procedures.
- the n° 1329-DEF electronic declaration for liquidation and regularization of CVAE 2023 and the n° 1330-CVAE-SD electronic declaration of value added and number of employees.
VAT – simplified scheme: deadline for submitting VAT form no. 3517 CA12 for companies closing their accounts on December 31st 2023.
05/15/2024
Deadline for remote payment of corporation tax and Contribution on rental income (CRL) balances, using statement no. 2572, for financial years ending December 31, 2023 or January 31, 2024.
Deadline for filing the European service declaration (DES) for intra-Community transactions carried out in April 2024.
VAT, regime of real taxation: Between May 15 and 24, file and pay your monthly VAT return on the date shown in your professional tax account.
05/31/2024 : VAT – basic exemption
Deadline for opting to pay from May 1er 2024 for companies benefiting from basic tax exemption (Article 293 F of the French Tax Code).
To know more…
Standard & Poor’s maintains France’s credit rating
In its decision dated Friday April 26, the S&P rating agency decided to maintain France’s AA rating with a negative outlook. This decision is motivated by concerns about the stability of public finances, according to the agency. It should be noted that Moody’s had previously assigned a rating similar to S&P’s last October. However, in April, Fitch took a different direction, assigning a slightly lower rating of “AA-“. In a reaction to this decision, the French Minister of Economy and Finance, Bruno Le Maire, expressed his satisfaction and underlined the government’s ongoing commitment to reducing public spending and accelerating France’s debt reduction.
Paid Leave and Sickness Act
Law no. 2024-364 of April 22, 2024 establishes total fairness in the acquisition of paid leave in all cases of sick leave, thus complying with European legislation. The French Constitutional Council has ruled that the French Labor Code’s provisions on paid leave and sick leave comply with the Constitution.
In particular, the DDADUE Act provides for :
- During a period of absence from work due to a non-occupational illness, the employee earns 2 working days’ paid holidays per month, up to a maximum of 24 working days per reference period (i.e. 4 weeks per year).
- In the event of absence from work as a result of an accident at work or occupational illness, the employee earns 2.5 days’ paid leave per month. These days are counted as actual working time, even beyond 12 months.
- On returning from sick leave or accident, whether work-related or not, employers are now obliged to inform employees of their paid leave entitlement for the current month: the number of days available and the deadline for taking this leave.
- For temporary employees, paternity leave and childcare leave are considered as part of the assignment period for the purpose of calculating compensation.
- If an employee is unable to take all or part of his or her leave due to illness or accident, whether work-related or not, a deferral period is set at 15 months from the date of notification by the employer after the employee returns to work, with retroactive effect.
- The law is retroactive for the period from December 1, 2009 to April 23, 2024, but does not apply to absences due to work-related injury or illness lasting more than one year, and is applicable subject to the force of res judicata or favorable contractual stipulations in force on the date leave entitlements are acquired.
- Time limit of 2 years from publication of the law to assert legal rights.
The Para-Hotel industry in 2024
Since the adoption of the 2024 Finance Act, the para-hotel sector has benefited from a clarification of its tax regime, in response to a Conseil d’Etat opinion dated July 5, 2023* , which had noted a partial incompatibility of the French tax regime for furnished rentals with hotel services with regard to VAT. This Finance Act introduced a new distinction between the hotel sector and the furnished rental sector, with services similar to those offered by hotels. This distinction is based on the duration of accommodation and the number of services provided, such as :
- Breakfast;
- Regular cleaning of premises;
- Supply of household linen;
- Customer reception.
Three of the four services listed above must be performed to meet one of the conditions for para-hotel status.
The Senate Finance Committee considers the new length-of-stay criterion introduced by the Finance Act to be “objective and relevant”** . It is set at a maximum of 30 nights, with the possibility of renewal.
Last but not least, it’s essential to pay close attention to the wording of contracts and general terms and conditions of use, in order to determine the correct VAT treatment.
* CE, opinion, 8e and 3e ch., 5 Jul. 2023, n°471877 : JO 13 Jul. 2023
** Sénat, Comm. Fin, Rapp. gén. n° 128, t. II, fasc. 1, Nov. 23, 2023
Abolition of aid for professionalization contracts
The government has taken a decision that will have an impact on companies looking to hire alternants. As of May 1, 2024, part of the hiring aid for alternants will be abolished. Since then, this abolition has specifically concerned the exceptional bonus intended for employers hiring alternants on professionalization contracts.
This measure marks a change in the government’s policy put in place to support youth employment during the economic crisis induced by the Covid-19 pandemic. Initially launched in the summer of 2020, these exceptional bonuses have been repeatedly extended. Currently, they involve the payment of a 6,000 euros bonus for each recruitment of an apprentice or an employee on a professionalization contract under the age of 30, during the first year of the contract.
This decision is part of the government’s efforts to achieve budget savings, with the announcement last February of budget cuts of 10 billion euros from 2024. As such, this decision represents a major change in the landscape of hiring aid for alternants, with the stated aim of making the system clearer and fairer. However, this aid will be maintained for apprenticeship contracts only.
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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