As an accounting firm based in Lyon, we meet every month to offer you the best of the French tax and accounting news.
12/10/2023 :
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 September.
16/10/2023 :
Employers liable for payroll tax (taxe sur les salaires): payment of tax on salaries paid in September or during the 3rd quarter.
Deadline for payment of property tax (Taxe Foncière)
To know more…
Real estate market at half-mast…
According to data from INSEE and the Notaires de France, the price index for existing properties continues to fall, with a 0.8% drop recorded in the 2nd quarter 2023. Variations are uneven from region to region, but there was a marked drop in the Île-de-France region with -2% in the 2nd quarter 2023. At the same time, the rise in mortgage rates is reducing the borrowing capacity of the French (by around 25%), thereby reducing the budget allocated to new property purchases.
Towards total dematerialization of luncheon vouchers
Olivia Grégoire, the Minister Delegate for Trade, has announced the government’s intention to put an end to paper luncheon vouchers “Tickets Restaurants” by the beginning of 2026. According to the Minister, a quarter of restaurants no longer accept paper vouchers, which are a source of red tape and high commissions.
This announcement is far from unanimous among beneficiaries: in fact, paper luncheon vouchers are still favored by many employees, who appreciate their flexibility and transferability (to relatives or associations).
Île-de-France: tourist tax triples in Olympic year
On September 26, Valérie Pécresse, President of Île-de-France Mobilités (IDFM), and Clément Beaune, Minister Delegate for Transport, signed an agreement to impose a 0.25-point increase in the “transport payment” tax on companies with more than 11 employees based in Paris and the surrounding areas, as well as a tripling of the tourist tax. This measure, if confirmed in the next Finance Act, would be used to finance transport in the Paris region.
Paid leave: employees earn paid leave during sick leave
A ruling by the French Supreme Court (Cour de Cassation) on September 13, 2023 has revolutionized the way paid leave is calculated in businesses. Contrary to the provisions of the French Labor Code as currently drafted, which was deemed not to comply with European law on the subject, this ruling shows that employees who are off work due to non-occupational illness continue to accumulate paid leave entitlements during their absence.
Is this measure immediately applicable? In theory, we’ll have to wait for the French Labor Code to be brought into line with this decision, but in the event of a dispute, an employee could potentially claim the application of this case law….
Companies: the main measures of the Finance Act for 2024
The Finance Act was presented to the Council of Ministers on September 27. Here are the main measures affecting companies:
- Postponement of the abolition of the CVAE: the measure had been announced by Economy Minister Bruno le Maire during the summer. The total abolition of the Contribution based on companies’ value-added (CVAE), which had been announced for 2024, will now be postponed until 2027.
The capping rate for the Local Economic Contribution « CET » (= CVAE + CFE) is also reduced to take account of this phasing-out: 2% in 2022, 1.625% in 2023, 1.531% in 2024, 1.438% in 2025, 1.344% in 2026.
- Strengthening the tax authorities’ means of control in the fight against tax fraud. In particular, digital commerce companies (dropshipping in particular) and multinationals will be targeted on the subject of transfer pricing.
- New “C3IV” green industry tax credit: industries developing projects in the fields of battery production, photovoltaic panels, wind turbines and heat pumps will be eligible for the new “C3IV” tax credit, subject to prior approval. The tax credit will cover buildings, installations, equipment and machinery acquired for the development of these projects, as well as all patents, licenses and other industrial property rights. The tax credit rate will be a minimum of 20%, increased by 10 to 20 points depending on the size of the company (excluding specific geographical zoning).
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
