Article 11 of the draft Social Security Financing Act 2017 amends several tax rules to tax on company cars
The tax period will be aligned with the fiscal year
1. It is planned to change the period of imposition of the tax on company cars to make it coincide with the fiscal year. Thus, the tax period is stretching from January 1 to December 31, instead of October 1 to September 30.
2. The tax would still liquidated by calendar quarter based on the number of vehicles owned by the company in the first day of the quarter or used by it during the quarter, taking into account, depending on the vehicle, their CO2 emissions and their way of carburetion. The rate would equal to a quarter of the annual rate
The procedures for reporting and payment will be simplified
3. The reporting obligations of companies subject to the tax would be amended to depend on their status in relation to VAT. Thus, the tax would be declared as follows:
–For indebted companies from VAT and subject to the normal tax scheme: the annex to the CA3 declaration filed under December or the fourth calendar quarter of the period for which the tax on vehicles companies is due; to those subject to a simplified tax system: a printed conform to a model drawn up by the administration filed no later than 15 January following the expiration of the period for which the tax is due.
–For companies not liable to VAT: on the annex to the CA3 declaration sent to the service responsible for covering the main points establishment during the month of January following the period for which the tax is due. The annex would be filed within the time limits for tax revenue.
4. It is also expected to ease the reporting procedures for filing and tax payment to enable companies to take the return electronically and pay the tax by means of electronic payment.
It is recalled that at present only companies under the Large Business Management (or DGE for these initials in French) can make payment through electronic payment, but not exempt from filing a paper return.
Entry into force
5.These new provisions would apply to tax periods beginning from the 1 January 2018. As a result, for the tax period from 1 October 2016 to 30 September 2017, the vehicle tax is due by companies the rules currently in force.
An exceptional tax established and liquidated in the same way that the tax on company cars would be due for the last quarter of 2017 (that is to say from October 1, 2017 to December 31, 2017) by applying new reporting and payment terms of the latter. It would be paid in January 2018. For vehicles leased by the windfall tax would be due if the rental period exceeds a period of one calendar month or thirty consecutive days during the quarter. In addition, for vehicles of employees or company managers who are subject to a mileage reimbursement costs pursuant to Article 1010-0 of the CGI, the number of kilometers to be used to reimburse the owner or to the user by the company and the amount of the deduction that benefits society would logically divided by four.