Abstract: To avoid any restatement under IFRS, subsidiaries of international groups may be tempted to capitalise R&D expenses under French standards. Not only does this approach offer virtually no advantages, but it also exposes them to unnecessary corporate income tax. Explanations. Accounting principle of R&D expenses under IFRS. Research outlays must be expensed, but… Research […]
Abstract Electronic invoicing, also called X-Invoice, will apply to all companies. Subsidiaries of international groups must take advantage of this rule to streamline their processes & enhance productivity. Explanations Reminder of the basis for the obligation to issue invoices in general According to Article 289 of the French General Tax Code (CGI), the obligation to […]
Young Innovative Company Status (JEI) – General overview The status of Young Innovative Company (JEI) enables young companies very active in R&D to get significant financial support to get past the hurdle of the first and most difficult years of their development. It mainly consists in a social expense (tax) exemption on researchers’ salaries and […]
Can a subsidiary of a foreign group benefit from the JEI (Jeune Enterprise Innovante – in French, Young Innovative Company) scheme? Yes, under certain conditions. Subsidiaries and JEI – conditions linked to the genuinely new nature of the business. Yes, provided that the subsidiary is independent and carries out a genuinely new activity (see above). […]
Green industry tax credit (C3IV) – Abstract – The green industry tax credit (in French Crédit d’Impôt au titre des investissments pour une industrie verte – C3IV) is designed to support investment in the production of clean technologies. It can be worth up to €150 million, or even more in some cases. Below is […]
Reduced taxation on software (IP BOX) – Abstract After having detailed the basic conditions in the article IP BOX – how can you benefit, we now turn to the application conditions for benefiting from the reduced rate of taxation on software, a complex scheme that is little-known to software publishers, especially subsidiaries of Foreign companies […]
French IP BOX – Abstract The French IP BOX or the taxation of software royalties at a reduced rate (10%), and more broadly of industrial property products, offers substantial corporate tax savings. However, their implementation is complex and subject to certain conditions. In this first part, we will look at the economics and the substantive […]
Abstract – Short-term rentals and RSI Do short-term rentals and the RSI mean a substantial increase in your tax and social security contributions? This is what was feared with the lowering of ceilings and allowances under the flat-rate system from January 1 2024. But it was not adopted. However, this lowering will be probably enacted […]
Collaborative Tax Credit (CICO) : How can a foreign company benefit from it? Abstract The 2022 Tax Law enacted the Collaborative Tax Credit as of January 1, 2022, to compensate for the elimination of the doubling of expenses of chartered research organizations in the calculation of the Research Tax Credit ( Crédit d’Impôt Recherche (CIR)). […]
Firing in France – Abstract Is Firing in France as difficult as it is said? You have recently hired an employee using a permanent contract. Unfortunately, her/his trial period is over and her/his achievements are below expectations. How can you separate at minimum costs to the company? Providing you with the first tips on […]
Innovation Tax Credit in France – Overview The innovation tax credit in France (in French “Crédit d’Impôt Innovation” (C.I.I.)) is a tax measure that enables partial funding of outlays incurred to enhance the functionalities of any device on a given market; it can be in the form of reimbursement or a reduction of corporate tax. […]
Young Innovative Enterprise and Research Tax Credit (CIR) – Abstract The Young Innovative Enterprise Enterprise is a status that the subsidiary of a foreign company can accumulate with the research tax credit under certain conditions. See the example below. An example of savings Young Innovative Enterprise status and CIR The data M, which has no […]
Tax credits in France – General objective Tax credits in France can be likened to subsidies granted by the French Government. They are aimed at decreasing most of the time the overall cost of labor significantly when they can be combined with each other (up to 50%). Tax credits in France – How does it […]
Letting furnished property in France: abstract Have you ever considered letting furnished your property (Loueur Meublé Non Professionnel)) in France? Because the LMNP is a tax niche that allows you to benefit from (i) the advantages of company taxation on the rental income and (ii) the advantages of personal taxation on the capital gains. If […]
Doing Business in France – The context and underlying questions. You represent a foreign business that wishes to start an operation in France and you know little or nothing about French business law, or tax and social security legislation. In particular, which legal status should you choose, with which fiscal consequences? Do you need to […]
How to open a bank account in France – Context When opening a bank account in France, many foreign businesses underestimate the delays and obstacles they may encounter. These are multiplied if you want to open it from a distance, without a company director having to visit in person. What follows are a few useful […]
On the verge of being appointed as manager in France, what are your responsibilities according to French commercial and labor law? To begin with, it is key to know your official title. Manager in France and responsibilities; what is your official title? If the subsidiary is an SAS: According to French commercial law, legal representatives […]
When a foreign company wishes to create a subsidiary in France, it can either select the SAS status (French simplified joint stock company), or the SARL status (French limited responsibility company). The advantages and disadvantages of each status The SAS is comparable to the incorporated company in English-speaking countries (or the AG in Germany), whereas […]
The firm’s philosophy when incorporating a business in France When incorporating a business in France, we, at JC Armand and Partners, do not settle for just informing you of the legal form that your business should adopt in France. Not only because texts in France dedicated to business law or taxation have many exceptions. It […]
Subsidies in France: General Overview In the Parisian region (IDF: Ile de France in French), International groups wishing to start a business in France, in particular an innovative one, can profit from 4 financial support programs, two of which are national. There are regional financial support programs in other regions comparable to those existing in […]
Incentives in France : background France has been always a land of breakthroughts : the country invented, among others, photography and the combustion engine, pioneered the automotive and the aircraft industries. It also discovered radioactivity and certain major deseases. Given the aforementioned facts, France started to support the high tec sector 30 years ago. The country beefed up the policy over the past years, by supplying a wide range of grants and tax credits. […]
What is the aim of the Worldwide Innovation Challenge? The Worldwide Innovation Challenge (WIC) wants to achieve a couple of goals. The first one is to boost Innovation in France, by giving to the country broader exposure to innovation and technology. Second, it strives to attract talents, entrepreneurs and risk-takers from all over the world. […]
WHAT ARE THE CONDITIONS TO GET THESE SUBSIDIES? Employment subsidies in France can also be substantial, especially if the subsidiary or the branch belongs to a group considered as a Small or Medium Enterprise (SME) under the European definition and develops one or several technological innovations (such as biotechnology, heavy metal recycling, marine resources […]
Branch with no tax identification: Have you ever considered this solution rather than the liaison office when starting a business in France? Because if both these organizations are fit just for hiring one or two staff(s) aimed at collecting information on potential clients, the branch with no tax identification allows to open a bank account… […]
Accounting in France: overview Individual entrepreneurs are generally not subject to any accounting regulations whatsoever. However, practically, the are required to hold a double-entry accounting for tax purposes. However, companies in principle are under the obligation of presenting their (individual) financial statements every 12 months and eventually their consolidated financial statements. Individual annual financial statements […]
Liaison office branch or subsidiary : In other words, in order to establish a business in France, does a foreign company have to systematically create a subsidiary company? In other words, can we find solutions more flexible, less expensive? A simple registration towards social bodies to hire staff, or a liaison office, or a branch. The […]
Business in France : what you need to bear in mind when starting, regardless of your status : If you are a natural person, you can choose the status of individual entrepreneur to start a business in France. This status, which is not expensive and easy to obtain, is particularly suited to activities involving little […]
Cost of labor in France: overview (general principles) The remuneration paid to wage earners is subject to social security contributions in France, provided that the wage earner works in France. On average, the sums paid by employers represent an average of 45% of the remuneration per contract of wage earners, and the sums paid by […]
WHAT ARE THE CONDITIONS TO GET LOANS TO INNOVATION SECTOR From the instance a foreign group is considered as an Small or Medium Enterprise (SME) under the European definition and that their French branch or subsidiary develops an innovating technology, it can benefit from the following favorable term loans: first of all, loans can reach a […]
Tax service in France: why is key? Today’s increasing complexity of the business and regulatory tax environment needs a sound tax service in France. Corporation tax, innovation tax credits, VAT, etc. constitute a vast maze of intricacy and of subtleties as they have their own goals and rules. As a result, preparing and issuing your […]
Context: why the French Movie Tax credit? Because France is proud of its heritage and is determined to spread it worldwide although they already are the number one tourist destination in the world. Films and other fictions play a substantial part in this promotion. That is why the Ministry of Culture has set up important […]
Video game tax credit : a powerful tax incentive for video creators You are video game editor and you wish to implant yourself in Europe? Consider France, along with its skilled labor in this sector and its video game tax credit, which can go up to M€ 6 per year. Background & Principle To encourage […]
How are profits made by branches and subsidiaries taxed ? Foreign companies’ branches and subsidiaries are taxed on profits made in France. Therefore, the profit has to be separated from the one made by the parent company in the country of origin. Yet, taking in consideration the economic dependence of the branch or the subsidiary […]
What may occur when creating a liaison office, a branch or a subsidiary in France.. Whatever the legal form chosen (subsidiairy, branch or liaison office) to carry out business in France, sometimes foreign companies hire one or several employees before creating a legal and official entity in France. This exposes the new entity to three risks. […]
Payroll tasks and services is one of those areas that grows as your business grows and often reaches a point of demanding a disproportionate percentage of your business’ administrative payroll dollars ou Euros. At Jean-Claude ARMAND & Partners, our payroll specialists can help correct this imbalance. To this end, we not only comply with regulations, particularly in […]
When foreign companies want to settle in France, they tend to refer to the legal system and the professional practices of their own country.
These companies know little of the French business practices. There are 7 things to know about business practices in France. First of all, you have to…
Research tax credit in France – Overview The research tax credit in France (in French “Crédit d’Impôt Recherche” (C.I.R.)) is a tax measure that enables a partial funding of research, development and experimentation (R&D) for companies; it can be in the form of a reimbursement or a reduction of corporate tax. International French group branch offices […]
Labor Law in France : what you need to know (general principles) French Labor Law seeks to protect wages and jobs and hence it is quite restrictive for employers. A wage earner is any individual employed by a company in which there is a relationship of subordination. This occurs whenever the employee does not hold […]
Corporate law and legal forms in France: what you need to know in a nutshell The main forms of capital-based companies are Limited Liability Companies (S.A.R.L.), Simplified Incorporated Companies (S.A.S.), and Incorporated Companies (S.A). The choice between these three solutions will depend on strategic and managerial considerations. An SARL is chosen (i) if the capital […]
Overview When it comes to talking about tax in France, keep the following in mind: more than in any other country, the more important a company is the greater the burden of taxes and duties it must bear in relation to turnover. Corporation Tax in France Individual entrepreneurs whose business is not considered a trade […]
OUR COMMITEMNTS WHERE RENDERING AN ACCOUNTING SERVICE IN FRANCE When we are in charge of the accounting for an international group, it is not only a matter of our preparing the mandatory financial statements to you, but we must also ensure that we fulfill the role of true financial managers. In this respect, we […]
