New measures to diminish the payment of the business property tax (CFE)
New measures to diminish the payment of the business property tax (CFE)
1/ Exceptional CFE 2020 tax rebate:
In order to support the companies impacted by the economic slowdown linked to the global pandemic, municipalities and public institutions for intermunicipal cooperation (EPCI) had the opportunity this summer to waive part of their budget from the Business Property Tax ( Cotisation foncière des entreprises- CFE).
So far, they have been able to support VSEs and SMEs in the tourism, hotel, restaurant, culture, air transport, sports and events sectors, which have been particularly affected by the economic slowdown linked to the sanitary crisis.
Provided for in Article 11 of the 3rd amended Finance Act for 2020 (Act 2020-935 of July 30, 2020), Decree No. 2020-979 of August 5, 2020 then came to specify the sectors concerned by the measure. The rebate granted will cover 2/3 of the share accruing to municipalities and EPCIs. Additional taxes and management fees will remain due.
The list of public authorities offering this exceptional aid can now be consulted here.
Taxpayers will have to check the correct application of this relief on line 24 bis of the tax roll that they will receive by the end of 2020. Any omission can be regularized upon request before December 31, 2021.
As a reminder, only establishments linked to the companies with annual turnover (excluding VAT) of less than €150 million are eligible for the rebate. For each taxpayer, the tax relief granted for the year 2020 is paid by the State up to 50%.
2/ Exceptional measures for the payment of the balance of the business property tax CFE)
- Possibility of a 3-month extension of the due date
Companies that would find themselves in difficulty in paying their CFE by December 15, 2020, in particular because they are subject to activity restrictions for sanitary reasons, can obtain, on simple request, a 3-month extension of their due date.
How to benefit from it?
Your request must be made to your corporate tax department (SIE), whose contact details appear on your CFE notice.
If your company is on a monthly tax payment basis, you must also submit your request for suspension of payment by November 30.
If your company is levied on the due date, you can, within the same deadline, stop your direct debit directly from your professional space on impots.gouv.fr: Section "Manage my direct debit contracts", then, after entering the tax number, "Modify or stop my direct debits".
- Possibility of anticipating the expected CET tax rebate
Companies planning to benefit from a territorial economic contribution (TEC) cap for 2020 based on added value can anticipate the expected tax rebate by deducting it directly from the balance of the CFE 2020. An exceptional margin of error of 20% will be tolerated for this allocation and no penalty will be applied.
How to benefit from it?
If you are concerned, you must inform your corporate tax department (SIE), preferably by e-mail.
As a reminder, for big companies, as for all the exceptional cash flow measures implemented since the beginning of the sanitary crisis, these extensions of deadlines are reserved for companies not making any dividend payments or share buybacks in 2020 and not having their tax headquarters or a subsidiary without economic substance in a country or territory that is uncooperative in tax matters.
Our experts are constantly monitoring regulatory changes providing support to businesses. Our articles are updated by midday on the basis of press releases and the publication of decrees by official bodies, which are deciphered by our experts. There may sometimes be a couple of hours delay between the official texts and our publication, the purpose of which is to provide you with preliminary answers to your questions.