Is it possible to set an upper limit on territorial economic contribution (CET)?

Confirmed on January 1, 2022-Legal and Administrative Information Bureau (Prime Minister), Ministry of Finance

Companies with larger CET 2% Some of those added values ​​can be applied for relief (ie, tax cuts) in the form of tax cuts. Applications for the 2021 limit must be submitted by December 31, 2022.

How are remedies calculated?

Capping rate is set to 2% Added value created by the company during the reference period.

  • When the fiscal year corresponds calendar year: TitleContentThe reference period is the tax year.
  • If the fiscal year does not match the calendar year, the reference period will be the fiscal year of the last 12 months of the year.

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Micro business

The relief calculation is done according to the following formula:

Business property tax + business value added tax- 2% Added value

The added value considered corresponds to 80% The difference between the amount of income and the amount of purchase made during the tax year.

Special declaration system (liberal occupation)

The relief calculation is done according to the following formula:

(Contribution to corporate property + contribution to corporate added value)- 2%Added value

The added value considered corresponds to 80% The difference between the amount of income and the amount of purchase made during the tax year.

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The relief calculation is done according to the following formula:

(Contribution to corporate property + contribution to corporate added value)- 2%Added value

The added value considered corresponds to 80% The difference between the amount of income and the amount of purchase made during the tax year.

Pay attention to the calculation Does not consider the following :

  • Tax credits for companies located in the Defense Restructuring Zone (ZRD)
  • Relief of inactivity
  • Consulate fees (Chamber of Commerce and Trade and Crafts Chamber of Commerce fees).

Remedies apply only to CFE.

The company can reduce the deposit or CFE balance by the expected value cap (PVA) amount. You need to notify the dependent Business Tax Service (SIE).

Relief has no effect on reducing CET, as it is less than the minimum CFE contribution set by the municipality.

Note

If payment is delayed or an error occurs, the company will Five%..

How do I request an exemption?

The company must file a remedy claim by December 31st of the year following the collection of CFE from the Business Tax Service (SIE) on which the head office depends.

You must use one of the following formats:

  • If your company is taxed on the basis of actual profits, you should use form number 1327-CET-SD.
  • If taxpayers are eligible for the Micro Enterprise System (BIC) or Special Filing System (BNC), you must use Form Number 1327S-CET-SD.

This request constitutes a claim and no longer requires a copy of the CFE tax notice to be attached.

Half of the relief obtained or expected in N-1 year can be deducted in advance from the N year CFE installment payment under the taxpayer’s responsibility.

Expected relief for the tax year can also be deducted from the CFE balance for the same year.

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