France has issued a decree outlining the guidelines for declaring and remitting the temporary solidarity contribution within the electricity production sector. The contribution is levied on electricity producers in France, with certain exceptions, and corresponds to the surplus revenue (margin) surpassing predetermined threshold levels per megawatt hour. The surplus amount is subject to a 10% reduction (equating to a 90% tax on the positive margin). The designated threshold figures vary from EUR 40 to EUR 175 per megawatt hour, contingent upon the nature and scale of electricity production, encompassing categories such as nuclear, wind, hydro, natural gas, and biomass. Payment of the contribution is obligatory for three periods: 1 July 2022 to 30 November 2022, 1 December 2022 to 30 June 2023, and 1 July 2023 to 31 December 2023.
The timelines for declaring and remitting the contribution are aligned with a taxpayer’s Value Added Tax (VAT) reporting schedule, whether it’s annually, quarterly, or monthly. For the initial period spanning from 1 July 2022 to 30 November 2022, the declaration and payment of the contribution must be completed by 25 July 2023. In the subsequent two periods, from 1 December 2022 to 30 June 2023, and from 1 July 2023 to 31 December 2023, the declaration and payment of the contribution should be fulfilled by 25 July 2024. Notably, the regulation stipulates an additional provision: a partial payment of the contribution for the second and third periods, which must be submitted by 25 October 2023.
