Legal news

Article 4 of the Code of Criminal Procedure, as amended by Law No. 2007-291 of 5 March 2007, provides that a civil action for compensation for damages caused by a criminal offence may be brought before a civil court independently of the public prosecutor.

However, the civil action must be stayed until a final decision is made on the public prosecution if the public prosecution has been initiated.

On the other hand, the initiation of the public prosecution does not require a stay of judgement in the other cases brought before the civil court, even if the decision to be taken in the criminal proceedings is likely to have an impact on the outcome of the civil proceedings.

(Versailles Court of Appeal, Social Division, 27 February 2025, Répertoire Général No 24/02477 and Lyon Court of Appeal, 3rd Chamber A, 16 November 2023, Répertoire Général No 19/04915).

Article 4(3) states that the commencement of criminal proceedings does not automatically suspend other civil proceedings, except for actions for compensation for damage caused by the offence.

This provision aims to prevent civil proceedings from being unnecessarily delayed by ongoing criminal proceedings, while respecting the legal force of criminal proceedings in relation to civil proceedings (Versailles Court of Appeal, Social Division, 27 February 2025, Répertoire Général No 24/02477).

Case law confirms this interpretation, as shown by the decision of the Versailles Court of Appeal of 27 February 2025, which applies Article 4(3) by specifying that the civil court may continue to rule on other civil cases even if a criminal decision is pending.

Furthermore, on 16 November 2023, the Lyon Court of Appeal ruled that the mere filing of a criminal complaint does not automatically justify a stay of proceedings in civil cases (Lyon Court of Appeal, 3rd Chamber A, 16 November 2023, Répertoire Général no. 19/04915).

In conclusion, Article 4 of the Code of Criminal Procedure strikes a balance between the independence of civil proceedings and the need not to hinder criminal proceedings, while allowing civil courts to continue their judgment independently of ongoing criminal proceedings, except in cases of compensation for damages caused by the offence.

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

The new Finance Law 2025 has introduced the following three points: the creation of an exceptional corporate tax contribution for large companies (I), the lowering of the VAT exemption thresholds from 1 March 2025 (II) and finally the abolition of the CVAE, postponed to 2030, and the creation of an additional contribution for 2025 (III).

I/ The extraordinary corporate tax contribution for large companies

The extraordinary contribution to the corporate income tax for large companies is a temporary additional tax introduced by Article 48 of the 2025 Finance Law.

It applies to companies subject to corporate income tax with sales of €1 billion or more in the first financial year ending on or after 31 December 2025.

This contribution is based on the amount of corporate income tax due for that financial year and aims to contribute to the recovery of public finances.

For tax-integrated groups, the parent company is responsible for paying this contribution.

Tax credits and tax receivables cannot be offset against this contribution (article 235 ter ZAA of the French tax code).

The contribution must be paid spontaneously to the competent public accountant no later than the date set for the payment of the balance of the corporate income tax (Article 1668 B of the General Tax Code).

II/ Lowering of the VAT exemption thresholds from 1 March 2025

From 1 March 2025, a single basic VAT exemption threshold of €25,000 in annual turnover will be introduced, regardless of the nature of the activity carried out.

However, this reform has been suspended until 1 June 2025 to allow time for stakeholder consultation.
The current thresholds of €85,000 for the sale of goods, €37,500 for the provision of services and €35,000 for lawyers, authors and performers will therefore continue to apply.

If the turnover limit for the current year is exceeded, the exemption will cease to apply from the date the limit is exceeded (Article 293 B of the General Tax Code).

The exemption does not apply to transactions covered by Article 257, Article 298 bis and transactions subject to VAT by virtue of an option under Articles 260, 260 A and 260 B for the supply of new means of transport (Article 293 C of the General Tax Code).

The exemption also does not apply when the tax authorities have drawn up an official report on tax evasion or when the taxable person is involved in a hidden activity (Article 293 BA of the General Tax Code).

Taxable persons established in the EU can benefit from the basic tax exemption scheme in their country of establishment and in other Member States under certain conditions.

III/ CVAE cancellation postponed to 2030 and creation of an additional contribution for 2025

The abolition of the CVAE, originally planned for 2025, has been postponed to 2030.

The rate of CVAE will be gradually reduced until 2029.

At the same time, an additional contribution to the CVAE has been introduced in 2025.

This contribution will be payable by companies that have to pay CVAE for 2025 and the rate is set at 47.4% of the CVAE payable for that year.

The details of this additional contribution are set out in Article 62 of the Finance Law for 2025, in particular with regard to the basis, rate and conditions for payment.

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

How do you calculate your tax based on the income tax scale?

The progressive income tax scale is used to calculate tax. It consists of several brackets, each with its own tax rate. Find out how to calculate your tax.

What changes with the 2025 Finance Act?

The income tax scale has been increased by 1.8% for each step to neutralise the impact of inflation on household taxation.

How do you calculate your income tax?

Income tax is calculated on the basis of net taxable income in three main steps:

1. Divide your net taxable income by the number of family units with children,
2. Apply the progressive income tax scale applicable to the income in that year to this result,
3. multiply the result by the number of family supplement units to calculate the amount of tax due

Tax scale: the steps to calculate your income tax

The tax on your income in 2024, which you declare in 2025, is calculated in increments according to your income.

Example: For a single person with a net taxable income of 32.000 EUR in 2024, the family allowance is a proportion, so the operation is 32.000 EUR/ 1= 32.000 EUR.

To calculate his/her tax, this result must then be subjected to the scale that applies to income received in 2024:

– Income bracket up to 11.497 EUR taxed at 0% = 0 EUR
– Income bracket from 11.498 EUR to 29.315 EUR taxed at 11%: i.e. (29,315 – 11,497) x 11% = 1.959.98 EUR
– Income bracket from 29.316 EUR to 32.000 EUR taxed at 30%: i.e. (32,000 – 29,315) x 30% = 805.50 EUR.

This single person’s marginal tax rate is 30%, but not all of his income is taxed at 30%. The total result is 0 + 1.959,98 + 805,50 = 2.765,48 EUR.

To find out how much tax the single person has to pay on their income, multiply this amount by the number of family units the single person has: 2.765,48 EUR x 1 = 2.765,48 EUR.

Another example : A married couple with two minor children with a net taxable income of 55.950 EUR in 2024.
The couple has three shares (two shares for the couple and half a share for each child), so the taxable income of 55.950 EUR is divided in three = 18.650 EUR.

To calculate their tax, this amount is subject to the income tax scale:
– Income bracket up to 11.497 EUR taxed at 0% = 0 EUR
– Income bracket from 11.498 EUR to 18.650 EUR taxed at 11%: i.e. (18,650 – 11,497) x 11% = 786,83 EUR.

As this family has three family benefit shares, this result must be multiplied by the number three. The couple’s income tax is therefore 786,83 EUR x 3 = 2.360,49 EUR.

As their income tax is below the threshold of 3.248 EUR it is entitled to a discount (see section below), which is calculated as follows: 1.470 EUR – (2,360.49 x 45.25%) = 1.470 EUR – 1.068,12 EUR = 401.88 EUR or, rounded up, 402 EUR.

The tax amount after applying the discount is therefore: 2.360,49 – 402 = 1.958,49 EUR.

What are the adjustments to the net tax payable?

The amount you pay in income tax may be adjusted according to your situation:

– cap on the family tax allowance,
– tax breaks for modest incomes,
– tax reductions and deductions,
– contributions on high incomes.

Ceiling on the family allowance

The tax benefit of the family allowance (i.e. the number of tax units in your household) automatically increases with the level of declared income.
To reduce the impact of this tax benefit on high incomes, the family allowance is capped with a maximum benefit for each additional half share.

As a result, the tax reduction linked to the family allowance is limited to :
– 1.791 EUR for each additional half share,
– 896 EUR for each additional quarter share.

To find out if you are affected by the family allowance cap, the tax authorities make the following two calculations and compare them:
– tax calculated on the basis of two shares minus the cap on the family allowance,
– tax calculated based on the actual number of shares.

If the second calculation is lower than the first, you get a cap and have to pay the tax from the first calculation.

Tax relief for low-income earners

Decote is a system that reduces the tax payable by taxable households with modest incomes.

To benefit from this mechanism, your gross income must not exceed the following limits in 2025 (tax return for 2024):
– 1.964 EUR for a single, divorced or widowed person,
– 3.248 EUR for a married couple subject to joint taxation.

The discount applies automatically. The discount is obtained by deducting 45.25% of the gross tax amount from the fixed amount of 889 EUR for single taxpayers or 1.470 EUR for jointly taxed taxpayers.

Tax reductions and deductions

Tax reductions and deductions are deducted from your gross tax. Tax benefits, also known as tax niches, are generally limited to 10.000 EUR. This overall cap is the same for all taxable households.
Certain tax benefits are excluded, such as donations to organisations that serve the public interest or expenses for institutions for dependent persons.

The contribution for high incomes

The extraordinary contribution for high incomes is added to income tax. It applies to taxable households with a reference income above the following thresholds

– 250.000 EUR if you are single, widowed, separated or divorced,
– 500.000 EUR if you are married or in a registered partnership and subject to joint taxation.

The rate of this tax varies according to your household situation and your income according to a progressive scale:

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

From March 2025, all self-employed entrepreneurs will be on the same footing: The VAT exemption threshold will be set at €25,000, regardless of their sector of activity. Does this mean they will have to change their business status?

From 1 March 2025, the VAT exemption threshold for self-employed entrepreneurs will be drastically lowered to €25,000, regardless of the sector they work in.

This reform, introduced after François Bayrou used Article 49.3 of the Constitution to push through the 2025 budget on Monday 3 February, has French micro-entrepreneurs scratching their heads.

Microentrepreneurs benefit from an exemption that allows them not to charge VAT to their customers, which is a significant advantage over businesses subject to VAT.

A sudden drop in the exemption threshold
Before we go any further, a quick reminder: micro-entrepreneurs, formerly known as auto-entrepreneurs, are self-employed individuals who are subject to a simplified tax and social security regime. Until now, the VAT exemption has been dependent on their activity:

– 85,000 EU for commercial and craft activities;
– EUR 37,500 for services and professional activities.

Below these amounts, they benefited from a VAT exemption, which meant they did not have to collect VAT or pay it to the state. But this model is about to be shattered. In a few weeks, the exemption threshold will drop to €25,000, regardless of activity.

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

Regulation (EU) 2023/1114 of the European Parliament and of the Council of May 31, 2023 on MiCA (Markets in Crypto-Assets), Règlement (UE) 2023/1114 du Parlement européen et du Conseil du 31 mai 2023 sur les marchés de crypto-actifs, adopted by the European Parliament and the Council on May 31, 2023, came into force on December 30, 2024.
It establishes a harmonized framework for the regulation of crypto-assets within the European Union, including Bitcoin.

I. Objectives and scope of the MiCA regulation

The main aim of the MiCA regulation is to protect consumers and ensure financial stability, while combating money laundering and the financing of terrorism.
It establishes a specific normative framework for crypto-assets, including Bitcoin, distinguishing three main categories:

• Utility tokens, which provide access to a specific product or service;
• Tokens referring to one or more assets often associated with property rights or underlying assets; and
• Electronic currency tokens (stablecoins) that are directly linked to a fiat currency or a basket of fiat currencies.

Although Bitcoin does not fit into any of these categories directly, it is nevertheless subject to some of the regulations established by MiCA.

II. Obligations for Bitcoin creators

1. Registration and licensing

Bitcoin creators, as actors enabling the management or facilitation of the use of Bitcoin within the EU (for example, exchange platforms or custody service providers), must obtain approval from a national competent authority before they can offer their services on the European market.
Approval provides a European passport, making it easier to offer services in all EU member countries.

2. Transparency and information

Bitcoin creators must ensure that information about the services they offer is transparent and accessible.

An information document, or “white paper”, must be drawn up, detailing:

• The characteristics of Bitcoin ;
• The risks associated with their use; and
• The costs and fees associated with Bitcoin transactions.

This document must comply with the transparency and information requirements of the MiCA regulation, which requires disclosure of all relevant information so that consumers can make an informed decision.

3. Anti-money laundering (AML)

MiCA requires Bitcoin creators to comply with anti-money laundering (AML) and combating the financing of terrorism (CFT) rules.

In concrete terms, this involves the obligation to track user transactions and set up a system for tracing crypto-asset transfers.

Providers must also verify the identity of their customers and report any suspicious activity to the relevant authorities.

4. Specific obligations for crypto-asset service providers (CSPs)

Crypto-asset service providers (CASSPs), such as Bitcoin exchange platforms or storage services, must meet strict requirements to operate legally in the EU. Among the points to watch out for:

Obtaining approval:

Check that PSCAs have obtained the necessary approval to offer exchange, storage or other Bitcoin-related services in the EU ;

Anti-money laundering rules:

Ensure that PSCAs comply with AML and CFT requirements;

Internal control and compliance:

Confirm that PSCAs must implement an internal control system to ensure compliance with regulatory obligations, particularly with regard to the security of user funds and risk management; and

European passport:

Verify that PSCAs can benefit from the European passport to offer their services throughout the EU once they have obtained their license.

5. Consumer protection and transparency

The MiCA regulation aims to guarantee consumer protection and ensure transparency in trading with crypto-assets, including bitcoin.

As such:

Publication of the white paper:

Bitcoin creators must publish a document detailing the risks, costs and implications of transactions.

Consumer information:

Ensure that consumers are fully informed of the risks involved in using Bitcoin and the costs associated with each transaction.

PSCA behavior:

PSCAs must act honestly, fairly and professionally in accordance with the standards of transparency and accountability imposed by MiCA.

6. Prevention of market abuse

Market abuse prevention rules applicable to crypto-assets must be observed, in order to combat market manipulation and fraud.

Bitcoin creators must ensure that transactions on their platforms are not used to manipulate prices or conduct illegal activities.

7. Transitional period and national adaptation

Service providers already registered under national regimes have a transitional period until July 1, 2026 to comply with the requirements of the MiCA Regulation.

Bitcoin creators will have to ensure that their practices comply with European requirements by this deadline.

In France, national adaptations are to be put in place to facilitate this transition, with enhanced registration requirements for crypto-asset service providers.

III. Combating fraud and tax evasion

MiCA is part of a broader framework to combat tax evasion.

Crypto-asset service providers must comply with specific reporting obligations and ensure that Bitcoin exchanges are transparent, with automatic exchanges of tax information between competent authorities.

The new tax obligations must be strictly complied with to avoid the risk of fraud.

Nicolas BRAHIN Avocat
Lawyer in NICE
Master’s Degree in Banking and Financial Law
Cabinet BRAHIN Avocats 1, Rue Louis Gassin – 06300 NICE (FRANCE)
MOB: +33 493 830 876 / Fax : +33 493 181 437
Email : nicolas.brahin@brahin-avocats.com
www.brahin-avocats.com