1: Direct taxes and assimilated taxes. Income tax. Corporation tax. Duties and penalties

1. Corporation tax gives rise to the payment, to the competent public accountant, of quarterly instalments determined on the basis of the results of the last closed financial year. The total amount of these instalments is equal to an amount of corporation tax calculated on the income taxed at the rate set in the second paragraph of I of article 219, on the income taxed at the rate set in b of I of Article 219 and on income taxed under the conditions set out in Article 238 of the last financial year. Companies that are newly created or newly subject to corporation tax, either by right or by option, are exempt from paying advance payments during their first year of business or their first tax period determined in accordance with the second paragraph of I of article 209.

The advance payments mentioned in the first paragraph are rounded to the nearest euro. The fraction of a euro equal to 0.50 is counted as 1.

Payments must be made no later than 15 March, 15 June, 15 September and 15 December of each year.

The organisations mentioned in the first paragraph of 1 bis of Article 206 and whose turnover for the last financial year is less than €84,000, as well as legal entities or organisations taxed at the rate of corporation tax provided for in article 219 bis are exempt from making advance payments.

However, the amount of the last instalment paid in respect of a financial year may not be less:

a) For companies with a turnover of between 250 million euros and 1 billion euros during the last financial year ended or the tax period, reduced if necessary to twelve months, to the difference between 95% of the amount of corporation tax estimated for that financial year according to the same methods as those defined in the first paragraph and the amount of the advance payments already made in respect of the same financial year ;

b) For companies with sales in excess of 1 billion euros during the last financial year ended or the tax period, reduced if necessary to twelve months, to the difference between 98% of the amount of corporation tax estimated in respect of that financial year according to the same methods as those defined in the first paragraph and the amount of the advance payments already made in respect of the same financial year;

c) (Repealed)

For the application of the provisions of a and b, turnover is assessed, for the parent company of a group mentioned in article 223 A or article 223 A bis, by adding together the turnover of each of the companies that are members of that group.

1 bis and 1 ter. (Repealed for financial years beginning on or after 1 January 1993).

2. The tax due in respect of the results of the tax period mentioned by the declaration provided for in 1 of article 223.

If this liquidation results in additional tax, it is paid when the balance statement is filed, no later than the 15th of the fourth month following the end of the financial year. If the financial year ends on 31 December or if no financial year ends during the year, the balance statement must be filed by 15 May of the following year at the latest.

If the settlement shows that the advance payments made are greater than the tax due, the excess, after deduction of other direct taxes due by the company, is refunded within thirty days of the date of filing of the balance statement and the declaration provided for in 1 of article 223.

3. (Transferred under 5).

4. (Provisions no longer applicable).

4 bis. A company which considers that the amount of the instalments already paid in respect of a financial year is equal to or greater than the total corporation tax assessment for which it will be liable in respect of the financial year concerned, before deducting tax credits, may dispense with further instalment payments.

4 ter. (Repealed).

5. The detailed rules for the application of this article shall be laid down by decree.