• Tax system for corporate gifts

    The deduction of VAT on corporate gifts is governed by rules that are separate from those that apply to tax on profits.   Can VAT on corporate gifts be recovered? As a rule, when a good is sold free of charge or at a price that is much lower than its normal price, the VAT […]

  • Inflation compensation

    In order to preserve the purchasing power of French people whose income is below a certain threshold, the Government has announced the allocation of an exceptional aid of 100 euros, which will be paid in a single instalment to eligible people. The implementation provisions of this measure are included in the second rectifying finance law […]

  • Exemption of Capital Gains on Sale of Main Residence

    In accordance with Article 150 U, II-1° and 3° of the French Tax Code, the capital gain made on the sale of a main residence and its appurtenances is exempt from tax, provided that all the conditions stipulated by law and laid down by the courts are met.   Definition of Main Residence Main residence […]

  • Taxation of management package income

    What is a management package? In order to align the interests of its managers and employees with those of its shareholders, a company can set up share acquisition schemes called “management packages”. These profit-sharing mechanisms are often used in LBO transactions. This may include, for example, the granting of share purchase warrants (SPW) or share purchase […]

  • Health pass in a professional environment

    As from 30th August 2021, employees of establishments receiving the public must be in possession of a health pass in order to work. Failing this, their employment contract may be suspended.   What is the “health pass”? “Health pass” is to be understood as either: A negative PCR test result Proof of Covid-19 vaccination status […]

  • Temporary Easing of the Carry-Back Mechanism

    In order to mitigate the impacts of the health crisis on business accounts, the first amending finance law for 2021 introduced an exceptional mechanism allowing a carry-back of the first loss recognised in respect of a financial year ending between 30 June 2020 and 30 June 2021.   What is carry back?  Carry back, or “carry […]

  • Health Crisis and General Meetings

    Since the French Ordinance of 25 March 2020, and the Decree of 10 April 2020, providing for exceptional and temporary adaptations of the rules for the convening, information, holding and deliberations of general meetings and other collective corporate bodies, other provisions have been published throughout the health crisis to allow them to continue operating. French […]

  • Gender Equality Index

    Since 2020, all companies with more than 50 employees, and since 2019, all companies with more than 250 employees, must calculate and publish on their website their Gender Equality Index on 1 March of each year.   Index Calculation The Gender Equality Index is calculated out of 100 points based on several indicators. For companies […]

  • Maintenance and Compensatory Allowances following Divorce and Income Tax

    Allowances for maintenance paid between spouses and ex-spouses are now deductible from the debtor’s income, whether or not the payments are determined by the court (Finance Act for 2021). Compensatory allowances paid as a lump sum, as an award of assets in ownership or as a temporary or lifelong right of use, dwelling or usufruct […]

  • Annual 3% Tax on Property

    French or foreign legal entities that directly or indirectly hold, on 1 January of the year of taxation, property or rights in rem in real-estate assets in France are required to pay the annual 3% tax on property, subject to exemption. Which entities are concerned? The annual 3% tax, established by Article 990 D of […]

  • Obligation to Employ Disabled Workers

    Businesses with at least 20 employees are required to employ 6% of disabled workers. However, they can fulfil this obligation in other ways.   Which businesses? The obligation applies to all employers who have at least 20 employees. New businesses with at least 20 employees must meet the obligation within five years. For companies with […]

  • Free revaluation of assets and tax consequences

    The Finance Act for 2021 introduces a temporary measure offsetting the consequences of free revaluation of assets on taxable income (new Article 238 bis JB of the French Tax Code). The aim is to help businesses impacted by the health and economic crisis to restore their financial health. The measure is optional and applies to […]