Our sustained expertise
In general, French or foreign companies with an activity in France are normally subject to taxation on their profits by way of corporation tax or by way of industrial and commercial profits or agricultural profits or non-commercial profits) .
By making deliveries of movable goods or services, they are also subject to value added tax.
Finally, they are liable for taxes and various taxes such as the territorial economic contribution (CET), the business property contribution (CFE), the tax on company vehicles, the apprenticeship tax and the tax. on wages.
Your tax lawyer offers you his skills to help these companies deal with the following issues:
Companies operating in France or abroad need specific advice in tax law and sometimes in international tax law to resolve their tax issues related to consolidation, business restructuring, merger, partial contributions of assets, or spin-off. Maitre Jonathan Semon, your tax lawyer, offers you his legal and tax assistance in the context of these various operations and in the context of more specific or exceptional operations such as the negotiation of approvals or tax rulings.
In addition, we note from our experience that companies are always looking for solutions to optimize fiscally the circulation of their financial flows on distribution, borrowing or central cash flow operations) between the different companies of a group. Maître Jonathan Sémon also offers practical solutions in order to reduce the tax burden on companies by setting up, for example, for groups of companies the tax consolidation system.
Our clients call on our tax law firm on an ongoing basis to set up alternative remuneration for their employees or managers. Our tax lawyers offer ongoing assistance to involve employees in the results of their company or to promote employee shareholding such as profit sharing, employee savings plans, profit-sharing, subscription or subscription options. purchase of shares, share subscription warrants from company founders, allocation of free shares to employees and corporate officers.
In addition, our tax law firm offers companies advice on the preparation of tax packages and in the management of tax reporting each year in order to optimize the balance sheets of companies.
Likewise, Me Jonathan Sémon has particular expertise in tax issues related to value added tax during the management of tax credits or on more specific questions concerning the territoriality of VAT.
We also note a strong demand for assistance from our customers when carrying out real estate, banking and financial transactions, insurance and reinsurance, and transactions linked to electronic commerce. These areas are often poorly mastered by companies and require special assistance during their implementation.
Companies also seek their tax lawyer for advice on more specific issues related to local taxes and various taxes (various such as the territorial economic contribution (CET), the business property tax (CFE), the tax on company vehicles, apprenticeship tax and payroll tax).
Our sustained expertise
Foreign and French companies make investments either in France or abroad and generally need advice to structure these operations and optimize the flows between the newly created company and the investment company.
They must take into account the principle of territoriality of corporate tax. This principle concerns all companies that have an international activity, that is to say:
- French companies exercising, totally or partially, their activity abroad;
- foreign companies exercising, totally or partially, their activity in France.
In France, the principle of territoriality implies that only profits made in companies operated in France are liable to corporation tax (CGI art. 209, I). Conversely, profits made in companies operated outside France are not taxable in France, even if the accounts of these companies are centralized in France and regardless of the nationality or the registered office of the company. This basic rule is applied, in principle, in a balanced manner, with profits treated as losses. As a result, while the profits are not taxable, the losses are not deductible either.
Your tax law firm assists its clients in setting up a holding company in an international context. The creation of a holding company can make it possible to organize the relations between the partners with flexibility, for example if it is a “joint venture” or a takeover holding company financed by a roundtable, or if it is a joint investment vehicle.
In this case, the selection criteria will not primarily be fiscal, but will relate to the advantages that can be derived from company law, which will generally require the search for the least restrictive country. Likewise, the possibility of flexibly developing shareholder agreements and the certainty that they will be legally enforceable are important elements of the choice, as is, where applicable, less relative protection of minority shareholders and creditors.
From a fiscal standpoint, the choice of the location of a holding company depends on multiple criteria:
- the rate of withholding tax levied in the countries where the subsidiaries paying dividends are located;
- tax regime for participation products (dividends, capital gains);
- system of redistributions to non-resident shareholders, and in particular the possibility or not of imputing withholding taxes levied on dividends paid by subsidiaries on withholding taxes borne during the redistribution of dividends by the holding company to its own non-resident shareholders;
- deductibility of interest borne by the holding company in respect of loans taken out for the acquisition of participations;
- extent and quality of the network of tax treaties;
- possibility of deducting any write-offs of debts which may subsequently prove necessary;
- effects of measures to combat tax evasion in the other States concerned, and in particular of legislation on controlled foreign companies (on article 209 B of the CGI)
- VAT regime (pure holdings, mixed holdings).
Given the multiplicity of criteria, your tax lawyer will help you in the location decision taking into account the constraints and choices of the group and, mainly, the nature and source of the income in question.
International companies also carry out investments correspond to the establishment of an operational structure to exercise a commercial or industrial activity in another country or to the establishment of a real estate company, of companies carrying out financial investments (taxation of investment funds and other international investment companies).
Your tax lawyer advises his clients on the tax consequences of choosing between a subsidiary and a branch in the context of setting up abroad.
Multinational companies also carry out corporate restructurings such as mergers, active partial contributions, spin-offs and may also consider moving their headquarters to another country. These companies may also be confronted with problems linked to transactions carried out between companies that are members of a group (“transfer pricing”) or linked to the taxation of profits made in countries subject to a privileged tax regime.
Finally, companies generally need assistance in international taxation when they are confronted with international disputes which require mastery of foreign taxation, local taxation and international taxation.