The ATAD (Anti-Tax Avoidance Directive)

Authors:

REF: 041:

The law n°2015-1785, registered on the 29th December 2015, brings about a 3-year tax payment as an FNAL contribution at a rate of 0,50% on employees’ salaries for firms which employ a
workforce of 20 employees or more through the years 2016, 2017 and 2018.

The FNAL contribution (Fonds National d’Aide au Logement), a tax used to support people for housing purposes, is a contribution to be paid by all employers whatever the size of the business.

This law was formed by the government in 1985 to ensure a substantial financing for housing allowance in France. This benefit targets people on low incomes who are renting or buying a house.

The law has undergone several changes since the amendment to the laws which finance social security, which occurred 8^th August 2014.

Up until 31^st December 2014, employers with a workforce of 20 employees or more were subject to the payment of the following contributions:

• A base tax of 0,10% on the share of wages not exceeding the social security threshold (€3,218 in 2016)
• An additional contribution of 0,40% on the share of wages which do not exceed this threshold
• An additional contribution of 0,50% on the share of wages which do exceed this threshold

Employers with a workforce of fewer than 20 employees were only subject to pay the 0,10% contribution on the wages which did not exceed the social security threshold.

After 1^st January 2015, the basic contribution and the additional one were combined to create a single contribution which is made up of two different tax rates:

• A 0,10% tax on wages which do not exceed the social security threshold for firms which have a workforce of fewer than 20 employees
• A 0,50% tax on all gross salaries in firms which have a workforce of 20 employees or more

It is important to note that:

• The tax plan formed by the 2008-776 law on 4^th August 2008 allows firms, who exceeded the threshold of 20 employees for the first time between 2008 and 2012, to pay the basic contribution of 0,10% for three years. After this, the firms are subject to the payment of the additional 0,50% contribution. However, the yearly contribution increases (progressively) as shown in the following points:
  • 0,20% the 4^th year
  • 0,30% the 5^th year
  • 0,40% the 6^th year

• According to the new law n°2015-1785, passed 29^th December 2015, the new tax plan allows certain firms to be subject to the 0,10% tax for 3 years, even if they exceed the threshold of 20 employees between 2016 and 2018. The aim of this is to encourage firms to continue to increase their workforce
• Similarly, the progressive tax between the fourth and sixth year no longer exists. Firms are subject to the 0,50% contributions as soon as the firm moves into its fourth year of having exceeded the threshold of 20 employees

It is also worth noting that:

• Firms who have unduly paid additional taxes are eligible to make a reimbursement claim to URSSAF (French collector of employee and employer social security contributions). However, this claim must be made within 3 years of the overpayment

If you think that this matter applies to you, it is important to ensure substantial understanding of all relevant information, facts and procedures. Here at Maupard, we would be more than happy to advise you on the next steps and to allow you to make the most of these opportunities.

Do not hesitate to contact us by telephone on +33 (0) 1 53 93 94 20 or by e-mail to [email protected], so we can work out the needs of your business. Our team of experts is here to answer any questions you may have.