News Share

The Tax Hub

Daily Tax Newsletter

France

24 September 2021

Responsive image

French Finance Bill for 2022 Presented in National Assembly

The French Finance Bill for 2022 was presented in the National Assembly on 22 September 2021. The bill contains a relatively limited number of tax measures, although some important amendments are made, and further amendments may be introduced as the bill goes through the legislative process.

Some of the main amendments concern compliance with EU law on withholding taxes applicable to non-residents insofar as the withholding taxes owed by a non-resident is calculated on a gross basis whereas, in the same situation, a French company would be taxable on a profit established after deduction of the costs incurred for the acquisition and retention of the income. In particular, it is provided that the withholding tax on payments for certain services under Article 182 B of the tax code will be applied after a flat 10% deduction, provided that the non-resident is in an EU or EEA member state. Further, when the costs actually incurred turn out to be greater than the amount deducted at the flat rate, a refund may be requested for the difference between the tax withheld and the withholding tax calculated on a net basis considering the actual costs incurred for the acquisition and retention of the income. The ability to claim a refund for excess tax withheld as compared to tax on the actual net basis is also provided for certain income distributions under Article 119 bis. These changes are to apply from 1 January 2022.

Other tax measures of the bill include:

  • The indexation of individual income tax brackets for inflation;
  • A provision temporarily allowing for the deduction of accounting depreciation on goodwill recorded in the account of companies under commercial funds when acquired between 1 January 2022 and 31 December 2023;
  • Measures to simplify VAT rules and comply with EU VAT law, including the VAT exemption on imports and supplies to EU bodies for COVID-19, certain aspects of the EU e-commerce rules, and changes in the VAT option to tax rules for the financial sector, allowing the option to be applied by operation rather than globally on all operations; and
  • The repeal of various "inefficient" tax measures.

Click the following link for the full text of the Finance Bill for 2022 (French language) as published by the National Assembly.

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Crosss Border Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment Streams.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More