Welcome to the high-level summary of Covid-19 related actions by the French Government. The details and links below have been split between “Tax Filings Affected”, “Government Employee Wages Benefits Programs” and “Government Loan Programs”; and are extracts from the more detailed information available on the websites of the French Praxity Participant firms’ websites, links to which are available at the bottom of this page. Praxity Participant Firms in France are Mazars and Talenz Axe Conseils
Tax Filing Affected
- Payment and declaration of VAT is not postponed.
- The DGFIP has instructed its departments to accelerate the refund of VAT credits.
- To simplify the obligations of taxpayers during the containment period, they can declare for March 2020 (VAT return to be filed in April 2020) and April 2020 (VAT return to be filed in May, if the containment period is postponed) 80% of the VAT due in February (50% for taxpayers who are highly impacted by the containment).
- Regularization of the VAT due will occur after the contain The government will accelerate of reimbursement by the State of VAT and business tax credits.
Corporate Income Tax Measures
- Filling and payment of the balance of 2019 Corporate tax
- Filling and payment of balance of 2019 Corporate tax is postponed to June 30th, 2020 (instead of May 15th, 2020). - For large companies (i.e. with more than 5,000 employees or an annual turnover exceeding EUR 1.5 billion) and groups, the extension of payment limits is conditioned upon the absence of dividend distribution and share buybacks between March 27 and December 31, 2020.
- Request for tax rebate - Companies may apply for a direct tax rebate. - Such requests for discounts must be justified on a case-by-case basis and may be granted only in the event of specific difficulties which cannot be overcome by deferring payment. - We recommend ensuring that the requested remission is fully substantiated and justified by a statement of the operating context, financial issues and any other elements that may be relevant to support the request. - In practice, the request for remission requires the following information to be provided: o Company name and SIRET number of your company; o Taxes concerned, due dates and amount; o Monthly sales from January to May 2019 and January to May 2020; o Statement of other debts to be honored (nature, amount and due date) ; o Cash flow level of the company; o Other supporting evidence; o List of invoices awaiting payment from utilities (organization, subject of the invoice, amount). - The form should be sent to the tax office to which the company belongs. - For the largest companies or groups (more than 5,000 employees or € 1.5 billion in turnover), the discount is granted subject to the commitment, in the request, not to pay dividends, or to proceed to share buybacks between March 27 and December 31, 2020
- Request for immediate reimbursement of tax credits - The tax authorities remind that refundable tax credits can be refunded immediately upon request. The procedure to be applied is the normal procedure for claiming refunds of tax credits. - This application involves filing the corporate tax balance statement (No. 2572), accompanied by the declaration(s) relating to the tax credit(s) (mainly declaration 2069-RCI) and the refund application (No. 2573). This filing is made via the professional area of the companies concerned. - CICE and research tax credit receivables that are coming due may also be reimbursed immediately. - Thus, for companies whose fiscal year coincides with the calendar year, these are receivables recognized for the 2016 fiscal year. Furthermore, companies meeting the definition of Community SMEs may also have their research tax credit claim reimbursed before the filing of the tax package. Income Tax
- Companies subjects to income tax - The DGFiP announced a postponement of the deadline to June 30, 2020 for filing specified tax returns (BNC, BIC), including for the returns of civil real estate companies not subject to corporate tax.
- Self-employed workers
- For self-employed workers, Bercy points out that it is possible to modulate the rate and the advance levies at source at any time. - It is also possible to defer the payment of withholding tax instalments on business income from one month to the next up to three times if the instalments are monthly, or from one quarter to the next if the instalments are quarterly. - All these steps are accessible via the private area on impots.gouv.fr, heading " Gérer mes prélèvements à la source", it being specified that any intervention before the 22nd of the month will be taken into account for the following month.
- Individuals - The French Tax Administration (FTA) grants an additional period for filing tax returns: - Thus, the online reporting service will be open from Monday 20 April until the following deadlines established by department : Departments 01 to 19 and French nonresident taxpayers: Thursday 4 June 2020 at 11.59 pm; Departments 20 to 54: Monday 8 June 2020 at 11.59 pm; Departments 55 to 976: Thursday 11 June 2020 at 11.59 pm - For paper declarations (exceptional case): receipt of paper declarations (only for taxpayers who declared paper in 2019) from 20 April 2020 until mid-May (depending on postal service) - The deadline is Friday, June 12 at 11:59 pm. - The second amended 2020 Bill of Finance adopted on April 23rd, 2020 (to be published in the Official Journal), provides for various income tax measures: - For the year 2020, the ceiling for exemption from overtime of 5,000 euros is increased to 7,500 euros. Overtime worked outside the period between March 16th, 2020 and the end of the State of health emergency (to date, set for May 24th, 2020) is kept within the limit of the ceiling of 5,000 euros. No conditions related to the sector of activity or the nature of the work performed during these overtime hours are formulated. This measure is therefore general and not limited to sectors directly affected by the COVID 19 epidemic; - The exceptional premium that may be paid by public organizations to agents particularly mobilized during the State of health emergency to deal with the COVID-19 epidemic will be exempt from income tax, social contributions and charges as well as taxes and contributions based on wages. - The ceiling for expenses eligible for a reduction of income tax of 75% of their amount is fixed, for the year 2020, at 1,000 euros per tax household instead of the 552 euros initially planned. As a reminder, this tax reduction is applicable to donations made to non-profit organizations helping people in difficulty (provision of meals and care, housing assistance).
Government Employee Wages Benefits Programs
- A simplified and reinforced use of the partial activity system open to companies in situation of cyclical economic difficulties. This system, also called partial unemployment, enables companies to receive aid which finances the loss of income caused by the reduction in the working time of the employees concerned. Request form: https://activitepartielle.emploi.gouv.fr/aparts/. Companies have 30 days from the date of cessation of activity to request partial activity; compensation is retroactive
- The Government has also decided to reinforce compensation paid to employees in a situation of partial activity: the Minister of Labor announced on March 13 that partial unemployment, normally compensated by the State up to the minimum wage, will be fully supported (100%) by the State, up to 4.5 times the minimum wage, as part of the COVID-19 epidemic.
- A Solidarity fund has been established, the purpose of which is to pay aid to private individuals and legal entities carrying out an economic activity particularly effected by COVID-19. The aid is 1.5 thousand euros (dependent on the loss of turnover) paid from the DGFIP and an additional 2 thousand euros on a case-by-case regional basis This fund applies to individuals or companies with less than or equal to 10 employees, With a turnover lower than 1 million euros in the prior year, and where the manager was paid less than 60 thousand euros in the prior year.
- Healthcare Professionals- Allows professionals to estimate a theoretical amount of the compensation to which they can claim, and to request a deposit on the basis of the estimate made. This system aims to provide the means to cover expenses throughout the period and thus facilitate the gradual resumption of activity under the best conditions. Beneficiaries include: Doctors (generalists and specialists), Dental surgeons, Midwives, Nurses, Masseurs-physiotherapists, Speech therapists, Orthoptists, and Pharmacists.
- See member firm articles for further guidance related to HR and Payroll: Mazars, Talenz Axe Conseils
Government Loan and Support Programs
- In the event of proven difficulty, the State (through Bpifrance) can guarantee up to 90% of the cash loans that companies (SMEs and mid-caps) may need. The President of the Republic announced a state guarantee for bank loans granted to companies up to 300 billion euros.
- A toll-free number (0 969 370 240) has been operational since March 10 to refer companies to Bpifrance regional offices for issues related to their treasury.
- Companies can request the support of the State and the Banque de France (credit mediation) in their requests for rescheduling of loans and moratoriums with their banking establishments for the next 6 months. - Contact form for the Credit Mediator: https://mediateur-credit.banque-france.fr/contactez-nous_mediation_credit
- The Minister of Economy and Finance also announced the creation of a solidarity fund of 1 billion euros minimum "for micro-entrepreneurs, for small businesses, for the self-employed, who have less than one million turnover "and who" lost, between March 2019 and March 2020, 70% of their turnover ".
- For VSEs and SMEs, invoices (water, gas, rents, electricity) may be temporarily suspended (consultations are carried out by the State with major donors and large supplier companies).
- Business Mediator (https://www.economie.gouv.fr/mediateur-des-entreprises ) for businesses that face a conflict in their business relationships with customers and / or suppliers. Business Ombudsman contact form: https://www.economie.gouv.fr/mediateur-des-entreprises/contactez-mediateur-des-entreprises
- For certain sectors (construction, chemicals), an acceleration of the approval procedures for new sources of supply, in order to support the sectors while respecting social, environmental and European standards.
- The Government has devoted a maximum of 80 million euros to “Frontier Venture” fund to help startups by investing a maximum of 5 million euros or 50% of the equity investment pool.
Links to Our Member Firms
Further Covid-19 advice
The information contained herein on Covid-19 government measures within the G8, consists solely of information that can be found on the websites of one or more Praxity Participant firms, and has not been written, modified or verified by Praxity, it’s staff, officers or directors.