Ia: Business value added tax

I. - 1. The business value added contribution is payable by the taxpayer who carries on the business on 1 January of the tax year.

2. However, in the event of a contribution, transfer of business, demerger of a company or universal transfer of the assets mentioned in article 1844-5 of the Civil Code, the business value added contribution is also payable by the taxpayer who is not carrying out any taxable activity on 1st January of the year and to whom the activity is transferred when the transaction takes place during the tax year.

II. - 1. The amount of value added is the subject, no later than the second working day following 1st May of the year following that in respect of which the business value added contribution is due, of a declaration by the businesses mentioned in I of article 1586 ter with the tax department responsible for their main establishment.

This declaration states, by establishment or place of employment, the number of employees employed during the period for which the declaration is drawn up. Employees carrying out their activity in several establishments or places of employment are declared in the one where the duration of activity is highest, even if the company does not have premises in this place of employment as long as the employee carries out his activity there for more than three months.

The number of employees assigned to vehicles is declared by transport companies at the premises or land where the vehicles are usually parked or, if there is none, at the premises where they are maintained or repaired by the taxpayer; failing this, the number of employees is declared at the company's main establishment.

By way of exception to the second and third paragraphs, the declaration of national rail transport companies mentions their workforce per establishment, in proportion to the property rental value taxed for the business property tax of these establishments.

A decree specifies the conditions of application of this 1.

2. In the event of the universal transfer of assets referred to in article 1844-5 of the Civil Code, the sale or cessation of a business or of the practice of a commercial profession, the opening of safeguard, receivership or liquidation proceedings, or the death of the taxpayer, the declarations referred to in 1 of this II and in the last paragraph of article 1679 septies must be filed within a period of sixty days deducted either under the conditions set out in 1 or 4 of article 201 or 1 of article 202 or on the day of the judgment opening the collective proceedings.

By way of exception, in the event of the opening of safeguard, receivership or compulsory liquidation proceedings where the continuation of the business is not terminated, if it is not possible to proceed with the definitive liquidation of the business value added tax due in respect of the year of the judgment opening the collective proceedings, only the declaration mentioned in the last paragraph of article 1679 septies must be submitted within a period of sixty days counted from the date of this judgment. This declaration must include an estimate of the amount of the business value added tax due in respect of the year during which the collective proceedings were opened, determined on the basis of the turnover and value added stated in the last required profit and loss declaration. This advance reporting obligation does not replace the reporting obligations mentioned in 1 of II of this article and in the last paragraph of article 1679 septies.

III. - Added value is taxed in the municipality where the taxpayer producing it has premises or employs employees carrying out their activity for more than three months.

Where a taxpayer has premises or employs employees carrying out their activity for more than three months in several communes, the added value it produces is taxed in each of these communes and divided between them in proportion, one third, to the rental values of the fixed assets subject to the business property tax and, two thirds, to the workforce employed there, divided according to the methods defined in II.

For the application of the second paragraph, the workforce employed in an establishment for which the rental values of industrial fixed assets assessed under the conditions provided for in articles 1499 and 1501 represent more than 20% of the rental value of fixed assets subject to business property tax is weighted by a coefficient of 5 and the rental value of industrial fixed assets is weighted by a coefficient of 42 for those assessed under the conditions provided for in article 1499 and by a coefficient of 21 for those assessed under the conditions provided for in article 1501.

However, when a taxpayer has, in more than ten communes, establishments comprising electricity production facilities mentioned in article 1519 E or hydroelectric power generation facilities referred to in l'article 1519 F, its added value is apportioned between the communes where these establishments are located and the other communes where this taxpayer has premises or employs employees for more than three months according to the share of its added value coming directly from the operation of these facilities, as shown in the accounting documents. The added value relating to these establishments is apportioned between them on the basis of the electrical power installed. When an establishment is located in several municipalities, its added value is divided between the municipalities in which it is located according to the business property tax bases, with the exception of that relating to the hydroelectric facilities mentioned in the first paragraph of article 1475, which is apportioned according to the rental value of these facilities in accordance with the rule laid down by this same article. The added value relating to the taxpayer's other establishments is apportioned according to the rules defined in the second and third paragraphs. The procedures for applying these provisions are defined by decree.

The fourth paragraph, with the exception of its third sentence, is also applicable to taxpayers with establishments in more than ten communes comprising electricity production facilities using mechanical wind energy mentioned in article 1519 D or photovoltaic electricity production facilities mentioned in article 1519 F. Where a photovoltaic electricity production facility mentioned in article 1519 F is established in several communes, its added value is apportioned between the communes on the basis of the electrical power installed in each commune. The procedures for applying these provisions are defined by decree.

Where the declaration per establishment mentioned in II is missing, the taxpayer's added value is apportioned between the communes on the basis of the elements mentioned in the previous year's declaration. Failing this, the taxpayer's added value is apportioned between the communes where the taxpayer has fixed assets subject to business property tax in proportion to their rental value. In this second case, the rental value of industrial fixed assets is weighted by a coefficient of 42 for those assessed under the conditions provided for in article 1499 and by a coefficient of 21 for those assessed under the conditions provided for in article 1501.

For taxpayers who employ no employees in France and have no establishment in France but who carry on a property rental or property sales business in France:

1° Their added value is apportioned between the locations of each building let or sold in proportion to the property rental value of each of these buildings;

2° The company must mention the address of the buildings let or sold in the declaration mentioned in 1 of II;

3° The declarations mentioned in 1 of II of this article and in the last paragraph of Article 1679 septies must be filed at the place where the income tax return is filed.

For the application of this III, the rental value of fixed assets subject to the business property tax is understood to be before any application of the allowance provided for in the penultimate paragraph of Article 1467.