French General Tax Code
In forceI.-Taxpayers may, by option, make a payment in full discharge of income tax based on the turnover or revenue from their professional activity when the following conditions are met:
1° They are subject to the schemes defined in articles 50-0 or 102 ter ;
2° The amount of income of the tax household for the penultimate year, as defined in IV of article 1417, is less than or equal to, for one share of family quota, the upper limit of the second bracket of the income tax scale for the year preceding the year in respect of which the option is exercised. This limit is increased by 50% or 25% respectively per additional half or quarter share;
3° They are subject to the scheme provided for in article L. 613-7 of the Social Security Code.
II.Payments are calculated by applying the following rates to the amount of turnover or revenue excluding tax for the period in question:
1° 1% for taxpayers subject to the regime defined in Article 50-0 and concerned by the threshold provided for in 1° of 1 of the same Article 50-0;
2° 1.7% for taxpayers subject to the regime defined in Article 50-0 and concerned by the threshold provided for in 2° of 1 of the same Article 50-0;
3° 2.2% for taxpayers subject to the regime defined in article 102 ter and concerned by the threshold provided for in 1 of the same article 102 ter.
III.-.The payments discharge income tax established on the basis of annual turnover or revenue, in respect of the year in which the results of the business are achieved, with the exception of capital gains and losses arising from the disposal of assets allocated to the business, which remain taxable under the conditions referred to in the sixth paragraph of 1 of Article 50-0 and the second paragraph of 1 of Article 102 ter.
Taxpayers who pay the payment in full discharge in respect of the current year are not liable for the advance payment provided for in 2° of 2 of article 204 A in respect of income subject to this payment.
IV.-The option provided for in the first paragraph of I is sent to the bodies mentioned in articles L. 213-1 and L. 752-4 of the Social Security Code no later than 30 September of the year preceding that in respect of which it is exercised and, in the event of the creation of a business, no later than the last day of the third month following that of the creation. The option applies for as long as it has not been expressly terminated under the same conditions.
It ceases, however, to apply in the following cases:
1° In respect of the calendar year during which the schemes defined in articles 50-0 and 102 ter no longer apply. In this situation, III does not apply. Payments made during this calendar year are deducted from the amount of income tax established under the conditions provided for in articles 197 and 197 A. If these payments exceed the tax due, the excess is refunded;
2° In respect of the second calendar year following that in which the amount of income of the taxpayer's tax household, as defined in IV of article 1417, exceeds the threshold defined in 2° of I.
3° (Repealed).
V.-.The payments referred to in I are made at the intervals, in accordance with the rules and subject to the guarantees and penalties applicable to the collection of the social security contributions referred to in Article L. 613-7 of the Social Security Code. Control and, where applicable, recovery of additional taxes are carried out in accordance with the rules applicable to income tax.
Taxpayers who have opted for the payment in full discharge referred to in I shall include on the declaration provided for in Article 170 the information referred to in 3 of Article 50-0 and 2 of Article 102 ter.
