MIL OSI Translation. Government of the Republic of France statements from French to English –
Source: Republic of France in FrenchThe French Republic issued the following statement:
Taxation
Published on March 18, 2024 – Directorate of Legal and Administrative Information (Prime Minister)
A single-member company with limited liability (EURL) which declares in its statutes to fall under the corporate tax regime (IS) and which, from its first financial year, files its results declarations under this tax regime, is deemed have regularly opted for this tax. This is what the Council of State affirms in a judgment rendered on February 5, 2024.
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A limited liability company whose sole shareholder is a natural person (in other words an EURL) contests before the administrative judge the increases in profits subject to corporate tax and its subjection to IS.
Remember that an EURL is automatically subject to the income tax regime unless it opts for IS. This option is done:
either by notification before the end of the 3rd month of the financial year for which the company wishes to be subject to IS for the first time; either by checking the box provided on the form submitted to the business formalities center or to the registry of the commercial court on which they depend when declaring their creation or modification.
The administrative court of appeal rejects the EURL’s request and does not call into question its subjection to the IS because the manager who checked the BIC: titleContent box in the form submitted to the business formalities center was not the sole partner. The EURL appeals to the Council of State.
The Council of State confirms the decision rendered on appeal. For her, when an EURL declares in its statutes to be subject to IS, it opts for this tax regime. This option is deemed to have been regularly exercised when the EURL files its results declarations under the IS regime from its first financial year.
Thus, the choice to opt for the IS is without any ambiguity.
Legal texts and references
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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.
