On 15 May 2023, the French tax authority issued comprehensive guidelines outlining the implementation of a temporary solidarity contribution aimed at certain companies operating in the fossil fuel sector. This contribution was introduced as part of the Finance Law for 2023 and is applicable to the first fiscal year starting on or after 1 January 2022.
The guidelines provide clarity on various aspects, including the scope of the contribution, calculation methods, declaration and payment procedures, as well as controls, sanctions, collection, and litigation measures. To be subject to the contribution, legal persons or permanent establishments must derive at least 75% of their total turnover in France from economic activities related to crude oil, natural gas, coal, and refining sectors, as specified in Regulation (EU) 2022/1854. The contribution rate is set at 33% and applies to the positive difference between the taxable profit for the year and 120% of the average taxable profit in the fiscal years 2018 to 2021.
Companies subject to corporate tax must pay the contribution in accordance with corporate tax payment terms, while those not subject to corporate tax must pay by the 15th day of the fourth month following the fiscal year or by 15 May 2023 for companies following the calendar year. The guidelines also address specific scenarios, such as the calculation of the contribution for integrated tax groups.
This initiative aims to promote sustainable practices and address environmental concerns within the energy sector.
