Legal news

The French Penal Code contains a number of provisions to penalise cyberattacks and personal data breaches. Articles 226-16 to 226-24 cover offences related to non-compliance with the provisions of the General Data Protection Regulation (GDPR) and the French Data Protection Act (Loi Informatique et Libertés).

These offences include unauthorised use of personal data, fraudulent collection of data, and non-compliance with security and data breach notification obligations.

Article 226-16 of the French Penal Code states that: “The offence, including negligence, of processing or having personal data processed without complying with the formalities required by law prior to their implementation is punishable by five years’ imprisonment and a fine of 300,000 euros […].”

Article 226-18 of the French Penal Code also regulates cases of violation or theft of personal data. This article states that “the collection of personal data by fraudulent, unfair or illegal means is punishable by five years in prison and a fine of €300,000”.

There is also a general article on fraudulent access to an automated data processing system (STAD). Article 321-1 of the Criminal Code states that “fraudulent access to or remaining in all or part of an automated data processing system is punishable by three years’ imprisonment and a fine of €100,000.

If the result is either the deletion or modification of data in the system or a change in the functioning of the system, the penalty is five years’ imprisonment and a fine of €150,000 […]”.

It is also important to maintain paragraph 1 of Article 323-2 of the Criminal Code, which states that “Obstructing or distorting the operation of an automated data processing system is punishable by five years in prison and a fine of 150,000 euros”.

The mental element of the offence of theft or violation of personal data:

The mental element, or criminal intent, is crucial to the classification of these offences. Article 121-3 of the French Penal Code states that ‘there is no crime or offence without the intention to commit it’. This rule means that the perpetrator of a crime or misdemeanour must have intended to commit it in order to be considered responsible, which includes the intention of the conduct and the intention of the result.

Personal data breaches can involve hacking or malicious extraction of personal data. However, some breaches can also be due to negligence, especially when it comes to controllers subject to the obligations of the RGPD, such as lack of security.

To define personal data theft, we need to refer to the general definition of theft. Theft is the fraudulent removal of another person’s property and the moral element is constituted when the perpetrator behaves as the owner of the property, knowing that he or she has no rights over it.

In a decision of 20 May 2015 (No. 14-81.336), the Court of Cassation confirmed the moral element of fraudulent maintenance and theft of data, emphasising that the accused was aware that he was in a protected area, having noticed the presence of access control (login and password).

Despite the initial access being facilitated by a technical error, the data was deliberately maintained and used for personal purposes without authorisation, showing fraudulent intent, which is a moral element required to classify the offences.

Personal data breach is characterised by the accidental or unlawful destruction, loss, alteration or unauthorised disclosure of personal data. The moral element of this type of offence can be due to negligence, such as human error or technical failure, or malicious intent, such as unauthorised access or disclosure for malicious purposes.

The substantive element of the offence of theft or personal data breach:

The decision of the Court of Cassation of 28 June 2017 (No. 16-81.113) illustrates that unauthorised copying of computer files, even if they are freely accessible on an internal network, constitutes theft when the perpetrator acts without the knowledge and against the will of the data owner.

In this case, a lawyer copied his colleague’s personal documents, which were accessible without a password on the shared server of their professional partnership and sent them to the president of the bar association.

The Court ruled that although the files were easily accessible, their appropriation was fraudulent because it was carried out for purposes unrelated to the company’s operations without prior authorisation from the owner of the documents. This decision confirms that the material element of theft can consist of simple unauthorised copying of data, regardless of its technical availability.

Thus, the element of a personal data breach can be the destruction, loss, alteration, unauthorised disclosure or unauthorised access to personal data. Examples are unauthorised use of passwords or installation of spyware.

In a decision of 10 May 2017 (No. 16-81.822), the Criminal Division of the Court of Cassation illustrates the material element of a violation of personal data protection, particularly in the context of unauthorised use of passwords.

In this case, a lawyer installed spyware (keylogger) on the computer of his wife, who is also a lawyer, to access her private correspondence. The Court of Cassation upheld the decision of the Court of Appeal, emphasising that the use of the software for purposes other than monitoring the law firm’s operations constituted an offence of fraudulently maintaining access to the computer system.

Med venlig hilsen / Kind regards

Cabinet Nicolas BRAHIN

Advokatfirma i NICE, Lawyers in NICE

Camilla Nissen MICHELIS

Assistante – Traductrice

1, Rue Louis Gassin – 06300 NICE (FRANCE)

Tel :   +33 493 830 876      /    Fax : +33 493 181 437

Camilla.nissen.michelis@brahin-avocats.com

www.brahin-avocats.com

The withholding tax came into effect in 2019. How are tax reductions and deductions integrated? When do you get an advance? We tell you all about it.

Tax credits and tax reductions: What are they?

A tax credit is an amount deducted from your income tax. If the tax credit is greater than the tax, the excess (or the full amount if you’re not liable for tax) is refunded by the Direction Générale des Finances Publiques.

The tax credit is also an amount that is deducted from your income tax. However, unlike the tax credit, there is no refund when the tax reduction is greater than the amount of tax due or if you are not liable for tax.

This is not to be confused with tax deductions, such as alimony: in this case, the amount is deducted from your taxable income.

With the introduction of withholding tax, tax reductions and deductions are still taken into account when calculating income tax. They are calculated based on the expenses reported in the annual tax return and are paid with a one-year delay. Thus, in 2025, households will receive their tax credits/rebates for expenses incurred in 2023 and declared in spring 2024.

Payment of tax credits and reductions: What is the 60% advance for certain recurring tax credits and reductions?

On 15 January, an advance of 60% was paid via bank transfer to recipients of certain tax deductions and reductions. The amount of the advance was calculated based on the tax situation for the previous year.

Taxpayers whose bank details are not known to the tax authorities will receive the advance in the form of a cheque sent by post.

The payment on account relates to certain tax reductions and deductions, such as

– tax breaks for rental investments (Pinel, Duflot, Scellier, Censi-Bouvard, Loc’Avantages),

– tax breaks for donations to charitable organisations,

– tax deductions for trade union membership fees.

In spring 2025, as part of the tax return for income and expenses actually incurred in 2024, the final amount of the tax reductions and deductions to which the taxpayer is entitled will be calculated and adjusted in summer 2025, taking into account the advance paid in January 2025 (the balance of the remaining 40%).

Is this your first time taking advantage of this tax benefit? Therefore, you could not receive an advance payment in January 2025 and you will receive all your tax reductions/deductions in summer 2025.

Payment of tax reductions and deductions: Which tax reductions and deductions are not affected by the 60% advance?

Certain tax deductions and reductions, such as the tax reduction for capital contributions in an SME, do not give rise to an advance payment. They will be repaid in full in summer 2025, after the tax return.

Payment of tax reductions and tax credits: What is the immediate advance of the tax credit?

Since January 2022, if you use home care, you can get an instant advance on your tax deduction.

Thanks to this instant tax credit advance, it can be immediately deducted from the amounts due: you only pay 50% of the amounts due (salary and social security contributions).

This service allows households to get the tax deduction immediately up to an annual spending limit of €12,000 (increased to €20,000 if there is a member of the tax household receiving a disability card or a mobility and inclusion card for the disabled), so there is no delay of several months.

The service is free and can be accessed by subscribing to it.

It is primarily aimed at

– Individual employers who enrol their employees via the ‘Cesu+’ service (by activating the ‘Cesu Avance immédiate’ service),

– Individuals using approved personal service organisations.

Med venlig hilsen / Kind regards

Cabinet Nicolas BRAHIN

Advokatfirma i NICE, Lawyers in NIC

Camilla Nissen MICHELIS

Assistante – Traductrice

1, Rue Louis Gassin – 06300 NICE (FRANCE)

Tel :   +33 493 830 876      /    Fax : +33 493 181 437

Camilla.nissen.michelis@brahin-avocats.com

www.brahin-avocats.com

When did the obligation to file a tax return come into force?

The obligation to file a tax return for taxpayers subject to the controlled tax return system has been in force since 30 April 1950. Taxpayers must file an annual tax return, the content of which is determined by decree (Article 97 of the General Tax Code).

Inheritance tax returns will gradually be filed electronically, with the obligation to file and pay electronically from 1 July 2025. The deadline for taxpayer’s resident in France is 15 June and 15 July for non-resident taxpayers.

For financial institutions, the deadline for submitting the required information is brought forward to 15 July from 2025.

What is the statute of limitations for tax returns in France?

The statute of limitations for tax returns in France is generally three years. This period is set out in Article L. 169 of the French Tax Procedure Code (LPF).

However, this period can be extended to ten years in cases of tax fraud or insufficient taxation revealed by legal or administrative procedures. In addition, the statute of limitations for associations that do not file their tax return is six years.

When does the tax limitation period start to run?

The limitation period for tax returns begins to run on 31 December of the year in which the tax return was or should have been filed.

This rule is interpreted in case law as a ‘three-year limitation period for the offences referred to in Articles 1741 and 1743 of the General Tax Code, which only runs from 31 December following the date on which the tax return was or should have been filed’.

Med venlig hilsen / Kind regards
Cabinet Nicolas BRAHIN
Advokatfirma i NICE, Lawyers in NICE
Camilla Nissen MICHELIS
Assistante – Traductrice
1, Rue Louis Gassin – 06300 NICE (FRANCE)
Tel : +33 493 830 876 / Fax : +33 493 181 437
Camilla.nissen.michelis@brahin-avocats.com
www.brahin-avocats.com

French real estate wealth tax – Impôt sur la Fortune Immobilière – (‘IFI’) was introduced in France in 2018, replacing the Impôt de Solidarité sur la Fortune (‘ISF’). French real estate wealth tax relates to property owned by individuals, and its taxable base includes the net value of the property, i.e. after deduction of liabilities. In this article, we look at the main items that can be deducted as liabilities in the ‘IFI’.

What is ‘IFI’?

The ‘IFI’ is an annual tax that applies to taxable households whose net wealth exceeds 1.3 million euros on 1 January of the tax year. Unlike the ISF, the IFI focuses exclusively on property assets, whether primary residences, second homes, rental properties or land.

Deductions from liabilities

Debts incurred by the taxpayer can be deducted from taxable wealth if they exist on 1 January of the tax year and are actually borne by the taxpayer, his or her spouse, PACS partner or cohabitant and any minor children for whom they have the legal management of the wealth.

Only debts relating to taxable assets, if any, can be deducted in proportion to the part of their taxable value.

The tax authorities believe that debts related to the main residence are deductible in full, but they must not exceed the taxable value of the main residence (i.e. 70% of its fair market value).

To determine the net taxable value, a number of debts can be deducted from the gross property assets. The main deductions allowed are the following:

Property loans: Debt incurred for the acquisition, construction or improvement of property is deductible. It is important to note that only debts outstanding as of 1 January of the tax year can be deducted.

Property loans make up a large part of the debt that can be deducted from the IFI’s liabilities. If the taxpayer has taken out a loan that allows for repayment of the capital at the end of the contract (‘bullet’ loan), the deduction is limited to the sum of the theoretical annual instalments remaining until the end of the contract.

This amount is calculated as follows: total amount of the loan – (total amount of the loan × number of years elapsed since the disbursement of the loan / total number of years of the loan).

In the case of loans where there is no deadline for repayment of the capital, the debt is deductible each year up to the total amount of the loan minus an amount equal to one twentieth of this amount per year that has passed since the loan was paid.

These special deduction rules apply to loans taken out to acquire taxable property or property rights, as well as loans taken out to finance the acquisition of company shares. However, loans to finance construction work are not covered.

Conditions for deductibility

For these loans to be deductible, certain conditions must be met:

Existence as of 1 January: The debt must exist on 1 January of the tax year. This means that the outstanding capital on this date is deductible.

Documentation: It is important to be able to provide appropriate documentation for loans, such as loan agreements, amortisation schedules and bank statements showing the outstanding amount.

Direct use for property: Loans must be taken out specifically for the acquisition, construction or improvement of property included in the IFI’s tax base.

Tax debt: Local property taxes, such as property tax or tax on empty dwellings, can be deducted if the debt is due on 1 January of the tax year.

However, income tax and social security contributions are not deductible. Council tax on holiday homes is not deductible.

Renovation work: Debts incurred to finance renovation, repair or improvement work on the property can be deducted. The work must be supported by estimates and invoices and the debt must be outstanding on 1 January. This means that the invoices are due on 1 January 2024.

Limits and conditions

There are limits and conditions for these deductions:

– Debts between members of the same taxable household or between close relatives (ascendants, descendants, brothers and sisters) are not deductible.

– Debts must be legal and justifiable. Informal or undocumented loans cannot be deducted.

Understanding debt deductions is important to optimise the “IFI” calculation. Taxpayers must be careful to document and justify liabilities to ensure they qualify.

If in doubt, it is advisable to consult a tax law expert for personalised advice that complies with current legislation.

Our Law Firm is at your disposal to help you manage your property assets for ‘IFI’ purposes. Do not hesitate to contact us if you have any questions or would like a personalised consultation.

Med venlig hilsen / Kind regards

Cabinet Nicolas BRAHIN

Advokatfirma i NICE, Lawyers in NICE

Camilla Nissen MICHELIS

Assistante – Traductrice

1, Rue Louis Gassin – 06300 NICE (FRANCE)

Tel :   +33 493 830 876      /    Fax : +33 493 181 437

Camilla.nissen.michelis@brahin-avocats.com

www.brahin-avocats.com

Tax changes in 2025

The Finance Act for 2025 increases the income-tax reduction for FCPI subscriptions from 18 % to 25 %. This applies to FCPIs approved between 1 January 2024 and 31 December 2025.

What will change for the tax in 2025?

With the roll-out of online returns, taxpayers who filed online last year will no longer receive a paper return in 2025.

What will change for homeowners in 2025?

To help first-time buyers, the 2025 Finance Act allows Departmental Councils to reduce or waive land-registration tax and registration fees on qualifying purchases.

Tax rate to be applied to the range

Example: Applying the 2025 scale to 2024 income, tax due is €5,765 for a single person (€11,530 for a couple). From €29,316 to €42,000: €12,684 taxed at 30 % = €3,805.

What are the tax reductions for 2025?

A €500 donation in 2024 gives a 66 % reduction (€330). You receive €178 in January 2025 and €152 in summer 2025.

What is the new inheritance cap for 2025?

• Inheritance & gift: €100,000 between parents and children.
• Gift: €31,865 between grandparent and grandchild; €5,310 between great-grandparent and great-grandchild.
• Cash gifts: extra €31,865 allowance if the donor is under 80 (children, grandchildren…).

What new laws will apply to homeowners in 2025?

The Malraux scheme is extended to 31 December 2024, giving a 22 %–30 % tax reduction on restoring listed buildings.

What changes will come into effect on 1 March 2025?

From 1 March 2025, higher airline-ticket tax and a tougher car eco-tax will raise household costs. RSA and activity-allowance recipients will benefit from fully pre-filled income declarations.

What are the new obligations for landlords in 2025?

From 1 January 2025, property ads must mention the obligation to clear undergrowth—pruning trees and removing debris to slow wildfires.

What is the maximum amount that cannot be exceeded to avoid paying tax in 2025?

For the 2025 return, a single person is exempt if net annual income is below €18,961 (i.e. €1,580.08 per month). Thresholds rise with household size.

How do I know if I will receive the tax credit for 2025?

The final 40 % of refundable credits will be paid in summer 2025, based on the spring 2025 return, provided eligible 2024 expenses were incurred.

How do you calculate your 2025 tax? What are the tax steps in 2025?

1. €11,498 – €29,315 → 11 %
2. €29,316 – €83,823 → 30 %
3. €83,824 – €180,294 → 41 %
4. > €180,294 → 45 %

What is the tax shield in France?

The tax shield applies to residents of France on 1 January of the income year and covers the taxpayer’s household.

How does the tax shield work?

It is a refundable credit designed to offset part of the loss of socio-fiscal transfers after an increase in labour income, effectively providing a work-bonus credit.

What are the main changes in the 2025 tax return?

From September 2025, married or cohabiting couples will automatically have individualised withholding-tax rates—no action required.

Med venlig hilsen / Kind regards
Cabinet Nicolas BRAHIN – Lawyers in Nice
Camilla Nissen MICHELIS, Assistant – Translator
1 Rue Louis Gassin – 06300 Nice – France
Tel: +33 4 93 83 08 76  |  Fax: +33 4 93 18 14 37
Camilla.nissen.michelis@brahin-avocats.com
www.brahin-avocats.com

Deduction for business expenses: How does it work?

Every year, when taxpayers file their tax return, they receive an automatic flat-rate deduction of 10% of their income. The purpose is to cover some of their daily expenses, especially those related to transport, meals, etc. This 10% flat-rate deduction is automatically deducted from their salary. So you don’t have to do anything special to benefit from it.

However, if you feel you’ve spent more on business expenses, especially commuting, you can choose to forgo this standard deduction and instead deduct your actual expenses.

You can do this by using the kilometre rates published by the tax authorities each year.

What distances are taken into account?

You can deduct the costs you incur commuting to and from work, but only for a limited distance.

There are three options, depending on the distance to your workplace:

– If you live 40 kilometres or less from your workplace (i.e. 80 kilometres round trip), you can take the full distance into account when calculating
your travel expenses.
– If your home is more than 40 kilometres from your workplace, you can only include 40 kilometres in your tax return.
– However, the full distance can be taken into account if you can justify this distance with special circumstances. These special circumstances can be related to your job or to special family or social situations. You need to attach an explanatory note to your tax return stating the reasons for the distance.

For full details, visit impots.gouv.fr

To make it easier for you to estimate your expenses, you can use the mileage scale to calculate the deduction you need to declare on your tax return.

What is the mileage scale for cars?

The scale is calculated based on the power of the vehicle and the number of kilometres driven.

It includes depreciation of the vehicle, repair and maintenance costs, tyre costs, fuel consumption and insurance premiums.

For electric cars, battery rental and battery charging costs are included as fuel costs and are therefore already included in the scale.

The mileage table used to indicate actual costs will not be revised in 2025.

So, for example, for 4,000 kilometres driven on business with a vehicle with a 6 hp combustion engine, you can claim actual expenses equal to: 4,000 km x 0.665 = 2,660 euros.

Useful information

You can also add loan interest if you bought the car on credit, in relation to business use, tolls and parking fees at the business location (garage, car park, parking meter). Don’t forget to save your receipts: the tax authorities will be able to verify your declarations, especially by checking maintenance and repair invoices showing the number of kilometres driven. Please note that using the kilometre scale does not exempt you from providing documentation to the tax authorities.

Since 2021, the amount of travel expenses calculated based on these scales has been increased by 20% for electric vehicles.