Due to the COVID-19 outbreak, the French state has planned a number of measures to support French companies and self-employed. Internago has summarized the package and some implications for your payroll services in France below:
VAT
No deferral of the VAT declaration is planned at this current time. However, businesses that have issues with paying VAT can approach the state administration and find a payment solution that works for both parties.
Solidarity fund
– Who can apply for the € 1 500 aid? The French State, the Regions and some large companies have set up a solidarity fund to help the smallest companies that are mostly affected by the crisis. However, the Tax authorities also stated that this fund is planned to be available to companies with less than 10 independent employees (excluding those belonging to a conglomerate), no matter their legal status. To qualify for the aid your company also needs to meet the following criteria:
– a turnover of less than €1 million during the fiscal year 2019.
– If created after the 1st of march 2019, the average monthly turnover must be less than € 83 333 between the company creation date and the 1st of march 2020.
– Is closed by the decision of the state administration or belong to a particularly affected sector; accommodation, catering, cultural and sports activities, events, fairs and exhibitions, transport and storage.
– Have suffered a loss of turnover during the period between the 21st of February and 31 March 2020, compared to the previous year, of more than 70%.
How to apply? From the beginning of April, applications can fill in a form via the “companies” area of the impots.gouv.fr website with the essential information for processing their application (SIREN/SIRET, RIB, amount of turnover, amount of aid requested and a declaration of honor certifying that the information provided is accurate).
Postponement of rent, water, electricity and gas bills
The smallest businesses (i.e micro entrepreneurs) eligible for the solidarity fund will be able to benefit from the right to defer payment of rent, water, electricity and gas bills.
Concerning water, gas and electricity bills: the companies who have difficulties in paying these utility costs can send a request for a deferral of the bills to their supplier.
Concerning the rent for commercial premises: The main landlord federations called on their landlord members to suspend rents for the April deadline and for the subsequent periods of cessation of activity imposed by the decree, once again, only for the companies who are described above.
Deferral of income tax installments for self-employed
It is possible to adjust your tax rate downwards by reducing your income for the year, your rate and your installments will therefore, be recalculated by the state administration. This allows you to adjust your SSP rate and future installments. It is also possible to postpone your BIC/BNC/BA deposits to the next due date. Monthly payments can be carried forward three times a year (possibly three times in a row) and quarterly payments once a year. All these steps must be carried out in your personal space on impots.gouv.fr under the heading “Manage my withholding tax” before the 22nd of the month so that the changes can be taken into account for the following month.
In the most difficult situations, it is also possible to temporarily delete a deposit. This does not cancel the tax due but allows you to defer its payment. Taxpayers can make spontaneous and free payments at any time to avoid one-off adjustments.
Short-term unemployment
Applications will be accepted without question for companies forced to close (establishments receiving the public aid that are not essential to the Nation). For other companies, it will be on a case by case basis.
Liquidity issues
From Monday the 30th of March, the state guarantee will go into action to allow banks to lend money to companies to solve immediate liquidity problems.
