The private equity funds referred to in Article L. 214-27 of the Monetary and Financial Code (CoMoFi) constitute a category of funds oriented towards so-called “risky” investment, of which venture capital funds (FCPR) are part. Two categories of venture capital funds can be distinguished according to the composition of their assets and the tax benefits […]

  • Reverse charge of VAT on imports

    Since 1 January 2022, the management and collection of VAT applicable to imports and release of dutiable goods from bond, both taxed and untaxed, have been transferred from the Directorate General of Customs and Indirect Rights (DGDDI) to the Directorate General of Public Finance (DGFiP) for all taxpayers identified for VAT in France.   The […]

  • Collaborative research tax credit and evolution of the innovation tax credit

    Article 69 of the 2022 Finance Act introduces a tax credit for collaborative research (CIRC). This provision aims to compensate for the abolition of the doubling of the research tax credit (CIR) base for expenditure subcontracted to public bodies from 2022 onwards.   Conditions for the application of the tax credit for collaborative research The […]

  • New information on the payslip

    An Order dated 23 December 2021 modifies the list of information which must appear on simplified payslips drawn up for remuneration paid as from 1 January 2022.   The net taxable amount Although already present on most payslips, the mention of the “net taxable amount” becomes mandatory. This amount corresponds to salaries and wages subject […]

  • 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 […]