France Announces SME Scheme
The French authorities have been looking to bolster the country’s small business sector, and have announced a scheme to allow small companies to request a specific settlement plan for the payment of their taxes.
The scheme, unveiled by the General Directorate of Public Finance is aimed at micro-, small- and medium-sized firms and sole traders particularly affected by the economic consequences of COVID-19, and covers VAT and withholding tax due for the months of February to April 2020, which should have been paid from March to May 2020. It also covers balances of corporate tax and contribution on added value (CVAE), which was due to be paid between March and May 2020.
Tax debtors will be allowed up to 36 months to pay the tax debts.
Those claiming the relief must have started their business activity no later than December 31, 2019, and must be up to date with their tax reporting obligations. They must employ fewer than 250 employees on the date the claim is made. Their turnover for the last financial year must not have exceeded EUR50m and they must not have a balance sheet total in excess of EUR43m.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look