French General Tax Code
In forceI. - A tax is hereby introduced payable by any electronic communications operator, within the meaning of Article L. 32 of the French Post and Electronic Communications Code, which provides a service in France other than a service provided over an internal network open to the public, within the meaning of the said Article L. 32.
II. - The tax is based on the amount, excluding value added tax, of subscriptions and other sums paid by users to the operators mentioned in I as remuneration for the electronic communications services they provide, less the amount of depreciation allowances booked during the financial year ended in respect of the year in which the tax became due, when they relate to equipment and materials acquired, as from the entry into force of the loi n° 2009-258 du 5 mars 2009 relative à la communication audiovisuelle et au nouveau service public de la télévision, par les opérateurs pour les besoins des infrastructures et réseaux de communications électroniques établis sur le territoire national et dont la durée d'amortissement est au moins égale à dix ans.
However, the following are excluded from the tax base:
1° The sums paid by operators in respect of interconnection and access services covered by the agreements defined in I of Article L. 34-8 of the Electronic Post and Telecommunications Code;
2° Sums paid for broadcasting or transport services for audiovisual communication services;
3° Sums paid for the use of universal directory enquiry services mentioned in article R. 10-7 of the same code.
Where the electronic communications services provided are included in a composite offer comprising television services, 2° is not applicable and the sums paid in respect of this tax are subject to a deduction of 50%.
III. - The tax is payable on receipt of the proceeds from subscriptions and other sums referred to in II.
IV. - The tax is calculated by applying a rate of 1.3% to the fraction of the base referred to in II that exceeds 5 million euros.
V. - Taxpayers shall settle the tax due in respect of the previous calendar year when they file the return referred to in 1 of Article 287 in March or the first quarter of the calendar year.
VI. - The tax is collected and audited in accordance with the same procedures and subject to the same penalties, guarantees, securities and privileges as value added tax. Claims are presented, investigated and judged according to the rules applicable to that same tax.
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