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Guide to company tax returns and accounting obligations

Guide to company tax returns and accounting obligations

By Nathalie Pouillard

Published: 22 October 2024

As a taxpayer, in the same way as 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 this age of electronic and paperless filing?

What is a company tax return?

Tax returns: definition

☝️ All taxpayers are required to file a tax return:

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

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

🏢 For businesses, 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);
    the income tax return for limited companies (SA, SARL, etc.) subject tocorporation tax (IS);
  • value added tax (VAT)returns;
  • the return for the territorial economic contribution (CET), a local tax that replaces business tax and is made up of :
    • the business property tax (cotisation foncière des entreprises - CFE),
    • the cotisation sur la valeur ajoutée des entreprises (CVAE);
  • the declaration for company vehicle tax (TVS), where applicable.

Tax returns and accounting

When it comes to accounting, companies are required to complete a tax package each year, which includes tax returns and their accompanying tables (balance sheet, profit and loss account, etc.).

🔎 The accounting entries file (FEC) is the dematerialised accounting document that enables the tax authorities to check your tax return.

When and how should I file my tax return?

What are the tax obligations?

Under article 170 of the General Tax Code, companies must file their tax returns every year from the moment they start trading.

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

There are two possible channels:

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

Filing your tax return

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

The form to be completed depends on your tax regime and your business activity:

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

  • self-employed workers, the self-employed and self-employed entrepreneurs subject to the non-commercial profits regime (BNC) complete the 2035 tax return;

  • companies subject to corporation tax (impôt sur les sociétés - IS) complete the 2065 tax return.

Each tax return has its own set of compulsory annexes, which you can find out more about in the article below.

Making a VAT return

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

  • for the standard tax system, form CA3,
  • for the simplified tax system, form CA12.

Note that VAT returns are made every year for companies under the simplified scheme, but monthly or quarterly returns are required for all others (if the amount of VAT does not exceed €4,000).

To file your local tax return (CET)

  • The business property tax (cotisation foncière des entreprises - CFE), calculated on the basis of the rental value of real estate, is declared using form no. 1447C.

  • If you are liable for the CFE and your turnover exceeds €152,500, you must also file a business value added tax (CVAE) return, using form 1330 - CVAE.

Timetable 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 by the 2nd working day after 1 May at the latest, with a 15-day tolerance for electronic filing.

May 4 is therefore the official deadline for :

  • 2020 income tax return for professionals liable for income tax;
  • income tax returns for the 2020 financial year for companies subject to corporation tax;
  • electronic declaration and adjustment of 2020 CVAE;
  • simplified VAT return.

☝️ For CFE, the declaration must be filed by 31 December of the year in which your company is set up. 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 returns and payments, visit the tax administration website.