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Guide to corporate tax returns and accounting obligations

Guide to corporate tax returns and accounting obligations

By Nathalie Pouillard

Published: October 22, 2024

As a taxpayer, just like an individual, a company is subject to a number of tax declarations.

What are they, and what are the company's accounting obligations?

When and how should tax returns be filed, in the age of electronic transmission and dematerialization?

What is a company tax return?

Tax returns: definition

☝️ Tax declarations are mandatory for all taxpayers:

  • individuals,
  • companies,
  • and self-employed professionals.

It involves declaring income to the tax authorities so that they can assess the amount of taxes to be levied.

🏢 For a company, the tax return includes:

  • the welcome letter, the first contact with the tax authorities, where the company chooses its various tax options;
  • the income tax return for entrepreneurs subject to income tax (IR);
    income tax returns for corporations (SA, SARL, etc.) subject tocorporate income tax (IS);
  • value-added tax (VAT)returns;
  • the declaration for the contribution économique territoriale (CET), a local tax that replaces the taxe professionnelle and comprises :
    • cotisation foncière des entreprises (CFE),
    • cotisation sur la valeur ajoutée des entreprises (CVAE);
  • company vehicle tax (TVS), if applicable.

Tax returns and accounting

When it comes to accounting, the company is required to complete a tax package each year, including tax returns and their appendices (balance sheet, income statement, etc.).

🔎 The FEC (fichier des écritures comptables) is the dematerialized accounting document used by the tax authorities to verify your tax return.

When and how to file a tax return?

What are the tax obligations?

According to Article 170 of the French General Tax Code, tax returns must be filed every year, right from the start.

Since the outbreak of the health crisis, it has become compulsory to file tax returns online.

There are two possible channels:

  • the EDI procedure, used by your partners such as chartered accountants;
  • EFI mode, i.e. via the online services of www.impots.gouv.fr.

How to file an income tax return

The income tax return is used to calculate taxable profits and to report them on the income tax or corporation tax return.

The form to fill in depends on your tax regime and activity:

  • craftsmen, shopkeepers and companies subject to personal income tax, under the industrial and commercial profits regime (BIC), complete the 2031 tax form;

  • self-employed professionals and auto-entrepreneurs under the non-commercial profits regime (BNC) complete the 2035 tax form;

  • companies subject to corporate income tax (IS) complete the 2065 tax form.

Each form has its own set of compulsory appendices, which you can read about in the article below.

How to file a VAT return

Once again, each tax regime has its own VAT declaration form:

  • for the normal tax system, this is form CA3,
  • for the simplified tax system, form CA12.

Note that VAT declarations are made annually for companies under the simplified system, whereas for others, declarations are made monthly or quarterly (if the amount of VAT does not exceed €4,000).

To declare local taxes (CET)

  • The cotisation foncière des entreprises (CFE), calculated on the basis of the rental value of real estate assets, is filed via the n° 1447C declaration.

  • If you are subject to the CFE and your sales exceed €152,500, you must also file a declaration for the Cotisation sur la Valeur Ajoutée des Entreprises (CVAE), via the 1330 - CVAE declaration.

Schedule for 2021 tax returns

Normally, tax returns are filed in April. This was the case for the 2020 tax returns.
This year, the Direction Générale des Finances Publiques has pushed back the date for 2021 tax returns, which must be filed no later than the 2nd working day after May 1st, with a 15-day tolerance for electronic filing.

May 4 is therefore the official deadline for :

  • 2020 income tax returns for professionals subject to income tax;
  • income tax returns for the 2020 financial year for companies subject to corporation tax;
  • remote declaration and regularization of CVAE 2020;
  • simplified VAT declaration.

☝️ For CFE, the declaration must be filed no later than December 31 of the year in which your company is created. You are not required to declare your tax base every year, except in the event of major changes (declaration no. 1447-M).

To consult the tax calendar for declarations and payments, visit the tax administration website.