Corporate Taxation

1. What is it?

An indirect tax on consumption, collected by businesses on behalf of the State. It is added to the sale price and then remitted after deduction of VAT paid on business purchases.

Mechanism:

• Charge VAT to customers.
• Deduct VAT paid to suppliers.
• Remit the difference to the State.

2. Who is concerned?

Most businesses, under various regimes:

• Exemption scheme: Relief for small businesses.
• Real regime: Simplified or standard.

Specific cases:

• Exemptions: Medical, education, associations.
• Reduced rates: Books, renovation, catering.
• International sales: Specific rules.
• Voluntary election: Possible even if exempt.

3. Why is it important?

Frequent errors may result in:

• VAT reassessments.
• Penalties.
• Tax audits.

Proper management is essential to safeguard your business.

4. What we do for you

We clarify the rules and assist you in:

• Identifying the most suitable regime or option.
• Verifying applicable rates and exemptions.
• Assisting with VAT recovery.
• Securing invoices and filings.
• Preventing reassessments.

Our goal: to make you autonomous and confident.

1. What is it?

Group structuring or reorganization operations with tax implications. Examples include:

• Creation or acquisition through a holding company.
• Mergers, demergers, universal transfers of assets.
• Partial asset contributions, spin-offs.
• Tax consolidation.
• Reorganizations (sale, retirement, transfer, fundraising).

Objective: to optimize the group’s tax management (profit allocation, dividend/capital gains optimization, preparation for disposals, risk isolation).

2. Who is concerned?

Companies within a group (holdings, subsidiaries) and entities involved in restructurings or external growth. Also relevant for executives, shareholders, and investors.

3. Why is it important?

A poor choice may lead to:

• Double taxation.
• High registration duties.
• Tax reassessments (abuse of law).
• Loss of tax advantages.

A sound structure enables:

• Avoidance of immediate taxation.
• Upstream distribution of dividends without tax leakage.
• Favorable transfer of the business.

This requires highly specialized expertise.

4. What we do for you

We design the structure best suited to your objectives (holding, tax consolidation, etc.). We ensure the legal and tax security of your operations so you can carry out your projects with confidence.

1. What is it?

Tax rules applicable to cross-border professional or personal activities. Examples include:

• Subsidiaries or branches abroad.
• Employees working outside France.
• Import/export operations.
• International assignments or projects.
• Relocation to or from France.

Each country has its own requirements.

2. Who is concerned?

Businesses and individuals with cross-border activities or income:

• Companies expanding internationally.
• Executives/employees on international mobility.
• Individuals with foreign income or assets.

3. Why is it important?

Improvisation can have serious consequences:

• Double taxation.
• Excessive withholding taxes.
• Mandatory disclosure of foreign assets.
• Penalties for non-disclosure of foreign bank accounts.
• Difficulty in proving the legitimacy of financial flows.
• Disputes over tax residency.

Omissions or approximations can be costly. Tax authorities demand full compliance.

4. What we do for you

We help ensure that your foreign income and assets remain an opportunity, not a risk. We assist you in:

• Determining your tax residency.
• Identifying French tax obligations on foreign income.
• Applying international tax treaties.
• Avoiding or reclaiming withholding taxes.
• Preparing specific filings.
• Justifying cross-border financial flows.
• Coordinating with local advisors.

1. What is it?

Income derived from a professional activity, classified into tax categories with specific rules:

• BIC (Industrial and Commercial Profits): Commercial, craft, or industrial activities.
• BNC (Non-Commercial Profits): Liberal professions, intellectual or artistic activities.
• Salaries and Wages: Employees and company directors treated as employees.

This classification determines the tax regime and allowable deductions.

2. Who is concerned?

Any individual or entity generating professional income:

• Sole traders, craftsmen, merchants.
• Liberal professions (lawyers, doctors, consultants).
• Employees and company directors.

Each professional must identify the correct category for their income.

3. Why is it important?

The distinction between categories impacts:

• How income is declared.
• Which expenses are deductible.
• The final tax liability.

An error may lead to:

• Tax reassessments (with penalties).
• Excess tax payments.
• Wasted time and resources.

It is essential for optimizing your tax position.

4. What we do for you

We help you understand your professional income and optimize its taxation. Our support ensures:

• Accurate income reporting.
• Identification of the appropriate tax category.
• Advice on deductible expenses and regimes (micro/real).

Our objective: to maximize your net earnings while ensuring compliance.

1. What is it?

A local tax composed of two levies:

• CFE (Cotisation Foncière des Entreprises – Business Property Contribution): Payable by companies and self-employed professionals engaged in non-salaried activities. Calculated on the rental value of business premises.
• CVAE (Cotisation sur la Valeur Ajoutée des Entreprises – Contribution on Business Value Added): Applies to companies with turnover above €500,000 (filing required from €152,500). Calculated on the value added.

Together, these two taxes form the CET.

2. Who is concerned?

• CFE: Nearly all businesses and self-employed professionals with business premises or land.
• CVAE: Companies with higher turnover.

Possible exemptions:

• Newly established businesses.
• Companies located in specific zones (urban free zones, rural revitalization areas).
• Businesses with low turnover.

Each company must assess its own situation.

3. Why is it important?

The CET can represent a significant burden. Many exemptions exist but must be explicitly requested within strict deadlines.

Lack of awareness can result in:

• Payment of undue amounts.
• Unnecessarily high tax liability.

Careful analysis is essential to optimize local taxation.

4. What we do for you

We review your situation to:

• Identify errors or omissions in your CET assessments.
• Check your eligibility for exemptions.
• Assist with filing requests.
• Challenge undue amounts.

Our objective: to ensure you pay only what is truly owed.

1. What is it?

Associations, foundations, trade unions, and non-profit organizations are, in principle, exempt from business taxes (CIT, VAT, CET). However, this preferential regime is not absolute.

If a non-profit regularly carries out economic and profit-making activities, it may become subject to these taxes. Examples include:

• Paid events.
• Refreshment stands or sales booths.
• Rental of premises or equipment for remuneration.
• Paid services (courses, training), especially where competing with the private sector.

2. Who is concerned?

All associations, foundations, and non-profit organizations generating economic income. Leaders and volunteers must remain vigilant about the criteria that may trigger liability for business taxes.

3. Why is it important?

Regular income or poorly framed activities may result in exposure to business taxation. The criteria are subtle (remuneration, advertising, target audience, frequency).

Errors may lead to:

• Tax reassessments.
• Retroactive payment of VAT/CIT.
• Loss of public subsidies.
• Loss of non-profit status.

Ensuring tax compliance is essential.

4. What we do for you

We help you:

• Determine whether your organization is subject to business taxes.
• Navigate complex tax rules.
• Preserve your non-profit model and avoid unexpected liabilities.
• Review activities and revenue sources for compliance.

We provide the necessary guidance to secure your organization’s position.

1. What is it?

Financial instruments granting access to a company’s capital without traditional shareholding. Widely used by startups and high-growth companies, they provide flexible and tax-efficient ways to involve employees and investors.

• BSPCE (Share Warrants for Startups): For young innovative companies. Employees and executives subscribe to shares at a predetermined price.
• BSA (Share Warrants): More flexible, can be granted to various profiles. Entitle holders to purchase shares at a set price on a future date.
• AGA (Free Share Plans): Free shares granted to beneficiaries, subject to conditions (seniority, performance). A tool for motivation and retention.

2. Who is concerned?

Startups and growth companies seeking to attract and retain talent or investors. Beneficiaries include employees, executives, consultants, and partners. Implementation requires careful consideration of governance and capital dilution.

3. Why is it important?

These schemes align individual interests with company performance, without immediate cost. They are powerful levers for motivation and loyalty.

Poor structuring may lead to:

• Legal or tax complications.
• Adverse tax treatment.
• Disputes.

When properly managed, they:

• Strengthen commitment.
• Optimize compensation packages.
• Support growth.

Understanding their tax advantages and constraints is essential.

4. What we do for you

We help you choose and implement the most suitable scheme. We ensure legally and fiscally secure structuring, with full compliance to applicable conditions and obligations. Our role is to simplify complexity into clear solutions, enabling you to associate your teams with the company’s success while avoiding unexpected tax risks.

1. What is it?

Rules and procedures applicable to companies in financial operations (fundraising, investments, loans, banking relationships). The aim is financial transparency and the fight against money laundering and terrorist financing.

KYC obligations require:

• Proof of the origin of funds.
• Disclosure of shareholding structure.
• Evidence of tax compliance.

These are essential for regulatory compliance.

2. Who is concerned?

All companies engaging in financial transactions, regardless of size or sector:

• Startups raising capital.
• Companies seeking financing or making investments.
• Any entity with regular banking or financial relationships.

Executives, CFOs, and legal teams are responsible. Investors and partners must also ensure compliance.

3. Why is it important?

Compliance with these obligations is crucial for business sustainability. An incomplete or non-compliant file may:

• Block fundraising or financing.
• Jeopardize partnerships.
• Trigger a tax audit.

Non-compliance undermines credibility, while proper compliance builds trust and stability.

4. What we do for you

We assist you in structuring and preparing financial files to ensure completeness and compliance. Our expertise helps you:

• Justify the origin of funds.
• Clarify shareholding structures.
• Demonstrate tax compliance.

Our objective: to help you move forward with your projects without obstacles, by securing your procedures and ensuring full transparency. We turn these constraints into opportunities to strengthen trust.