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  • New address and new websiteSelling a property or shares if you are the French partner of a US LLC
  • Establishing a commercial presence abroad by choosing a model to control tax risks

They benefited from our expertise

Presentation

Establishing a commercial presence abroad by choosing a model to control tax risks

Assignment

One of our clients, a French group, already operating globally and an industry player, wanted to grow its presence in Europe and break into a new market there. To limit its initial investment, the group decided to first set up a sales office in this country and then transform it into a branch or subsidiary if the market seemed promising.

The Altexis solution
By consulting Altexis very early on in the decision-making process, the company was able to choose the most suitable presence, taking into account the needs and constraints of the group from a commercial development and a taxation perspective. Furthermore, thanks to its network of international tax specialists, Altexis was able to anticipate the tax consequences of their chosen model not only in France but also in the country they were establishing a presence in. By integrating the tax component at an early stage in the decision-making process, the company was able to set up a secure and successful business presence.
Read the entire business case

About us

The Altexis law firm

Our law firm based in Paris is dedicated solely to taxation issues. Our team benefits from a wealth of experience and offers you tailored and unique solutions in a tax environment subject to continuous change. Working closely with its clients, the firm is able to respond to their needs in French, English, German or Turkish.

100% tax

Altexis has always held the firm belief that taxation lies at the heart of company strategy. In the 1990s, our team was one of the very first to devote itself exclusively to this subject.
100% dedication to the control of your tax risks.
Thanks to our many years of experience and with the support of our partners, we are able to offer advice and solutions that allow you to control your tax risks and respond to your challenges in the most appropriate way.
100% independent, multicultural and multilingual
A small team similar in size to a boutique law firm but a member of two of the most important international networks of tax lawyers, Law & Numbers and Corporate Tax Alliance. Our independence means you are guaranteed trusted advice which has proven its worth for more than 20 years.

How do we work?

Seeking multiple opinions to achieve a unique tax solution
Taxation is an increasingly complex subject and there are no “off-the-shelf” solutions. Every problem you bring to us deserves special treatment and ultimately results in a solution that simply cannot be replicated.
To manage this complexity, we organise a state-of-the-art engineering process and are capable of forming multidisciplinary teams around problems that require such handling.
Our aim is to deliver a unique solution, perfectly tailored to your needs to assure you of the perfect management of your risks.
Maintaining the necessary trust in relations with the tax authorities
Nowadays, taxation is at the heart of the debate in France because of its importance for the relationship between the state and its citizens. For several years, this relationship has been strained and has entered into a power relationship to the detriment of a constructive and virtuous partnership; the law of 24 October 2018 again reinforced methods of control and sanction serving the tax authorities. But it also contains provisions that allow the taxpayer new opportunities for transactions.

Against this background, our team is now seeking more than ever to achieve a balance between the parties and to preserve the necessary confidence.
Here at Altexis, our priority is to manage your tax risk. We carry out a permanent dialogue with you to forge conditions that will meet your needs and allow you to fully comply with administrative requirements.

Altexis, tax lawyers based in Paris

Our team of tax advisors based in Paris benefits from a wealth of experience and offers you tailored and unique solutions in a tax environment subject to continuous change. Working closely with its clients, the firm is able to respond to their needs in French, English, German or Turkish.
Schedule a meeting with a tax lawyer

Our international network

International tax
ALTEXIS is a member of 2 international networks of law firms specialising in tax law and business law.
Ever since it was established, ALTEXIS has recognised the importance of surrounding itself with international tax experts. ALTEXIS co-founded the network Law & Numbers in 2005 and is a member of the network Corporate Tax Alliance which has more than 42 members in 36 countries.
Our team works in partnership with law firms specialising in other areas of the law to be able to offer its clients a global tax and legal service, both at a national and international level (specialists in both English and German taxation).

Our news

News

New address and new website

To support our growth and welcome you in comfortable surroundings, we have moved offices to 44 avenue des Champs Elysées. Our website has also been revamped; it will be regularly […]
Read more
kept up to date to ensure you are informed of our activities and have the latest news on tax developments.
We look forward to welcoming you very soon,
The Altexis team

Selling a property or shares if you are the French partner of a US LLC

Are you a private individual, resident for tax purposes in France, and own a property abroad via a “partnership”-type company? You are wondering […]

Read more

What tax system applies to the revenue generated from renting this property or selling your shares. Altexis has developed expertise in the taxation of foreign partnerships and this extends to several jurisdictions. Altexis is in a position to advise you on the tax treatment of operations linked to your participation in a partnership.

Assignment and context

Our clients, private individuals resident for tax purposes in France, are the partners of a US LLC. The LLC owns property that has generated rental income which is taxable both in the United States and France under the U.S.-France income tax treaty.

Evaluating the risks and opportunities

The US LLC has special characteristics: it is a transparent company for tax purposes but with limited liability. This type of company does not have an equivalent in French law.

These characteristics make it difficult to interpret the most suitable tax regime.

That is why, faced with the following two options to know whether to sell the property or sell their shares, the partners resident for tax purposes in France consulted Altexis to understand the tax consequences of their future choice.

The Altexis solution

Altexis with the assistance of its tax lawyer equivalent in the United States, analysed the tax implications applying to the options being considered in both jurisdictions allowing the partners to make an informed decision.

Establishing a commercial presence abroad by choosing a model that allows you to control tax risks

Are you a French group wishing to grow your presence abroad or a foreign group wishing to establish a presence in France? Are you wondering what form of establishment […]
Read more
would be the most appropriate? The tax aspect of this operational decision is vital. Altexis can support you in this decision.

Assignment and context

One of our clients, a French group, already operating globally and an industry player, wanted to grow its presence in Europe and break into a new market there. To limit its initial investment, the group decided to first set up a sales office in this country and then transform it into a branch or subsidiary if the market seemed promising.

Evaluating the risks and opportunities

Even if the decision to establish an office abroad is part of the group’s development strategy, this decision has tax implications. The form of establishment in the foreign country and the functions and responsibilities exercised by the people in charge of the development of this market may tip the simple sales office towards a permanent establishment and generate local taxation before market penetration is sufficiently stable and advanced.

The lack of clarity of vision on the tax front could significantly reduce the benefits of development for the group if the tax aspects are not managed up-front.

The Altexis solution

By consulting Altexis very early on in the decision-making process, the company was able to choose the most suitable form of presence, taking into account the needs and constraints of the group from a commercial development and a taxation perspective.

Furthermore, thanks to its network of international tax specialists, Altexis was able to anticipate the tax consequences of their chosen model not only in France but also in the country they were establishing a presence in. By integrating the tax component at an early stage in the decision-making process, the company was able to set up a secure and successful business presence.

Business case

Contact us

Contact us
A trusting relationship to respond to your needs
Our law firm specialising in tax issues is available at all times to help you deal with all your tax problems.

Our clients’ concerns are of paramount importance. That’s why we adopt the same professionalism and efficiency towards every client and every problem.

Contact us on +33 (0)145 613 610 or fill in the form below
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Legal notice

Website publisher
Altexis
44 avenue des Champs Elysées
75008 Paris
SIRET: 80192681700017 – NAF: 6910Z – N° CNIL: 857063
Tel.: +33 (0)145 613 610
Terms of use
The website that can be accessed by the following url: www.altexis.fr is operated in accordance with French law. The use of this site is regulated by these general terms and conditions. In using this site, you acknowledge that you have read and accepted these conditions. These may be amended at any time and without notice by Altexis. Altexis shall not be held liable in any way for the misuse of this service.

Editorial manager
Marylène Bonny-Grandil
Limitation of liability
The information on this website is as accurate as possible and the site is periodically updated but may still contain inaccuracies, omissions or gaps. If you encounter a gap, error or something which appears to be a malfunction, please notify us by e-mail and describe the problem as precisely as possible (page posing problem, triggering action, type of computer and browser used).

Any content downloaded is carried out at the risk of the user and the user is solely responsible for doing so. In consequence, Altexis shall not be held liable for any damage to the user’s computer or any loss of data following the downloading.

Altexis shall not be held liable for the hypertext links set up on this website to other resources present on the Internet.

Disputes
These conditions are subject to French law and any dispute or lawsuit that may arise from the interpretation or execution of these conditions will come under the exclusive jurisdiction of the courts on which the registered office of the company Altexis depends. The reference language for settling any disputes is French.
Right of access
In application of this law, the internet community shall have the right of access, rectification, modification and erasure concerning their personal data. This right can be exercised by sending a letter to Altexis 44 avenue des Champs Elysées 75008 Paris.
The personal data collected are not in any way entrusted to third parties apart from the third parties tasked with processing the service ordered by the web user.
Confidentiality
Your personal data are confidential and shall not in any way be communicated to third parties apart from the third parties tasked with processing the service ordered.
Intellectual property rights
All the content of this site including, but not limited to, graphics, images, texts, videos, animations, sounds, logos, gifs and icons as well as their formatting, are the exclusive property of Altexis law firm apart from trademarks, logos or content belonging to other partner companies or authors.

Any reproduction, distribution, modification, adaptation, re-transmission or publication, even partial, of these different elements is strictly forbidden without the express written consent of Altexis. This representation or reproduction, by any means whatsoever, constitutes counterfeiting punishable by articles L.3335-2 et seq. of the French Intellectual Property Code. Failure to comply with this prohibition constitutes counterfeiting which may give rise to the civil or criminal liability of the counterfeiter. Furthermore, the owners of the content copied could take legal action against you.

In exactly the same way, Altexis is the owner of “the rights of producers of the databases” referred to in Book III, Title IV of the French Intellectual Property Code (law no. 98-536 of 1 July 1998) on copyrights and databases.
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Information and exclusion
Altexis does its utmost to provide reliable information and reliable updating of its websites. Nevertheless errors or omissions may arise. Web users therefore need to play their part in ensuring the accuracy of information with Altexis and to advise any modifications of the website they deem appropriate. Altexis is not in any way liable for the use of this information, and for any direct or indirect damages that may result.

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Liability
No other guarantee is issued to the client who is responsible for formulating his needs clearly and has a duty of inquiry. If the information provided by Altexis appears inaccurate, it is up to the client to carry out the necessary checks himself concerning the consistency or likelihood of the results obtained. Altexis is not in any way liable towards third parties for the use by the client of information or of its absence contained in its products including one of its websites.

Contact us
Altexis would be happy to receive your comments or suggestions. You can write to us by completing our contact form.

Companies
Anticipate, support, manage
Altexis will help you anticipate your tax problems, assist you in the event of a dispute and support you in the creation and management of your company.

 Life of a company
 Creating your company: steps to validate
 Company taxes (corporation tax / income tax / VAT / CET (local economic contribution))
 Tax credits for companies
 Tax inspection and disputes
 Specific transactions
 Acquisition/sale
 Restructurings: mergers/contributions/
demergers

 Group
 Transfer pricing
 Fiscal integration
 International
 Developing your activity in France as a foreign company

 Partnerships operating on a global basis

Creating your company: steps to verify point by point
Do you want to create a company in France? Do you already have a specific project and want to put your plans into practice? Do you know how to finance your project?
There are 3 key stages involved in creating a company:
• The preparatory phase of your project
• The creation phase of your company
• The start-up phase of your activity

At each stage, you need to verify the key points with the help of your lawyer.

Before the creation of your company
Before creating your company, you need to think about the following points (preparatory phase of your project):
• Define the details of your project: the activities proposed (services, sale), the sector chosen (industry, commerce, services), the target audience
• Confirm the method of financing: establish a business plan
• Choose a name for the company: check beforehand with the French National Institute of Industrial Property (INPI) that the name you want to give your company is not already being used by an existing company

• Make sure you have the required approvals to carry out the activity

• Choose a business location: hire premises, registered address, warehouse
• Define the most suitable legal form for your activity: freelancer, sole trader, SAS, SARL, SAS, SNC

• Determine the social status of the executive director
• Determine the tax regime suitable for your company
To ensure the feasibility of your project from a legal and fiscal point of view, we strongly advise you to seek the assistance of a lawyer.
After the creation of your company
When you have confirmed you have a viable project with your lawyer, you can start the phase of creating your company, as follows:
• Drafting statutes of your future company
• Registering your company with the Centre des Formalités des Entreprises (CFE/business start-up centre)
• Registration with different organisations: URSSAF, Social Security/RSI, tax service (particularly for VAT registration if applicable)
• Set about publishing a notification of the company’s inception or creation of a business in a journal of legal notices
Again, we strongly recommend you seek the assistance of your lawyer at this essential stage.
At last, once the company is created, you can enter the start-up phase of your activity:
• You will receive your Kbis or certificate of company registration
• You will need to set up an invoicing system
• You will need to appoint an accounting professional (a chartered or certified accountant, if possible)
• You will need to draft employment contracts if you are going to hire employees
• You will need to comply with VAT rules in the case of exports or intracommunity deliveries

The different taxes applicable to companies (corporation and income tax, VAT, local economic contribution)
Company tax credits
• About you
• Taxation in France
o Who can benefit from the research tax credit?
o What sort of expenditure entitles you to the research tax credit?
o Is there a tax credit for innovation expenditure?
o What is the amount of the CIR research tax credit and the CII innovation tax credit?
o What are the terms and conditions you need to meet to benefit from the research tax credit and the innovation tax credit?
• Our support
About you
You are a company and want to develop your research and development work.

You are a company and want to find out about tax incentives in France.
You are a research and development company and want to take advantage of a tax credit for this reason.
Taxation in France
The research tax credit, also known as the CIR (crédit d’impôt recherche), is a tax incentive aimed at companies carrying out research and development activities, in accordance with article 244 quater B of the French General Tax Code (CGI).
Who can benefit from the research tax credit?
Companies entitled to this scheme are companies subject to corporation tax or income tax who perform an industrial, commercial or agricultural activity.

These companies can benefit from a tax credit for their research and development activities, and particularly:

• Fundamental research operations: theoretical or experimental contribution to the resolution of technical problems;
• Applied research operations: possible applications of results of fundamental research or finding new solutions;
• Experimental development activities: prototypes or pilot plants

These operations can occur in various sectors such as the chemical industry, science and information technology or software design.
What sort of expenses entitle you to the research tax credit?
Expenses eligible for the CIR are, in particular:
• Personnel costs relating to research scientists and research technicians
• Operating expenses
• Expenses resulting from outsourced research
• Collection expenses
• Expenses relating to the monitoring of technical developments
This expenditure may be taken into account either in whole or in part as the case maybe, on the dual condition that it is deductible from the taxable profit in France and corresponds to operations located within the European Union, Norway, Iceland or Liechtenstein.
Is there a tax credit for innovation expenditure?
The innovation tax credit also known as the CII (crédit d’impôt innovation) is an extension of the research tax credit (CIR).
Only companies meeting the definition of an SME under European Community law (= having a salaried workforce in the company of less than 250 people and achieving an annual turnover not exceeding €50 million or an annual balance sheet total not exceeding €43 million) are allowed to benefit from this tax credit.
The innovation activities concerned are any scientific, technological, organisational, financial or commercial initiatives, including investment in new skills, which lead or are intended to lead to new or improved products and services. This particularly includes design work, producing prototypes, new products or more pilot projects.

What is the amount of the CIR and the CII?
The rates for the research tax credit are as follows:
• 30% of all the expenses incurred up to €100 million;
• 5% of the expenses exceeding €100 million;
The innovation tax credit for SMEs is:
• 20% for innovation expenses incurred by SMEs up to €40,000.
To find out if your company’s expenses are eligible for the research tax credit or the innovation tax credit, it is advisable to seek the advice of a tax lawyer.

What are the procedures involved in applying for a research tax credit or an innovation tax credit?
To benefit from the tax credit, eligible companies must sign a special declaration no. 2069-A-SD and attach it to the corporation tax balance statement for companies subject to corporation tax and to the declaration of earnings for companies subject to income tax.
The CIR and CII are determined for each calendar year, whatever the date of the end of the financial year.
Our support
Altexis offers you full support in applying for the research tax credit and innovation tax credit, in particular:
• We can check if your company is eligible for the research tax credit
• We can calculate the amount of tax credit to which you are entitled
• We can complete the corresponding declaration to apply for the research tax credit

Tax inspection and disputes
About you
You are a company established in France;
You are a French branch of a foreign company;
You are a foreign company and carry out operations in France
Taxation in France
The French tax system is essentially based on the principle of declaration. Taxpayers are required to establish their own taxation basis.
Even though there is a presumption of accuracy and honesty, the tax authority can correct inaccuracies which may take various forms (errors, inaccuracies or omissions).
The tax authority therefore exercises supervisory control regulated by the provisions of the French General Tax Code and the French tax procedure handbook.
Under certain specific conditions (hidden activity), the tax authority may need to establish a company’s taxable basis itself. When such a procedure, known as “taxation d’office” (automatic taxation) is underway, the burden of proof is on the taxpayer.

More generally, company tax inspection takes the form of an apparently contradictory procedure known as “accounting verification” during which taxpayers may be assisted. It consists of a set of operations carried out with the purpose of examining a company’s accounts at their premises and confronting it with certain evidence or material facts in order to check declarations already made and to ensure that any necessary adjustments are made depending on the tax affected (corporation tax, withholding taxes, VAT etc.).
The tax authority may consider that certain dealings or omissions constitute aggravating circumstances and may impose penalty adjustments, the rate of which can vary (40% or 80%).
Throughout the inspection procedure and after the reassessment proposal, the company may submit its comments, assert its rights and communicate its interpretation.
If a disagreement persists between the taxpayer and the tax authority concerning the basis of the adjustment, it is possible to apply to the competent court (judicial or administrative) which shall make a decision to either confirm the consequences of adjustment or cancel them in whole or in part.

To make sure that the adjustments do not cripple a company’s finances too heavily, it is possible under certain conditions to benefit from a suspension of payment while awaiting the final decision (administrative or judicial).

Our support
Altexis offers you support and assistance at any stage of your tax inspection as well as during the trial phase should the dispute be taken before the courts.

Our services include in particular:

• We will enforce all the guarantees granted to the taxpayer during the inspection phase;
• We will identify all the errors and flaws in the tax authority’s argumentation;
• Our assistance also covers the litigation linked to debt recovery

Specific transactions
Acquisition/sale
Restructurings: merger/contributions/scission

Group
Transfer pricing
Fiscal integration
About you
You are a company established in France.
You are the French branch of a foreign company.
Taxation in France
Large companies are organised into a multitude of entities present both in France and abroad.
The principle of the individuality of taxation may lead to complex tax management of these groups of companies.
To better ensure tax neutrality of these economic structures and to reinforce the competitiveness of companies, the legislator has instituted a tax regime for groups of companies.
This regime is optional and limited to a period of five years renewed by tacit agreement. It applies solely to companies subject to corporation tax under the provisions of common law.

This regime allows the French parent company of a group to be solely liable for corporation tax in the group formed by itself and, under certain conditions, its sister companies.

Strict conditions regarding the holdings of the parent company as head of the group, as well as the subsidiaries, are required to be part of the group consolidated for tax purposes.
The member companies determine and declare their tax result in the normal way without paying the corporation tax.
The overall result is determined and declared by the parent company. It is composed of the algebraic sum of the results of the member companies of the group. Offsetting losses against profits allows a mitigation of the tax burden of the group.
Tax adjustments also need to be included in the overall result to neutralise the operations performed between the member companies of the group.
Each company member of the group is jointly and severally liable for the payment of tax due by the group and, if need be, the corresponding penalties up to the limit of the tax and the penalties to which the company would be liable if the latter wasn’t a member of the group.
In recent years, under the influence of European law, the tax consolidation scheme has been amended several times to avoid discrimination against European companies not able to become part of a French tax group.

Our support
Altexis offers you support in the constitution of the tax group, in its management and, where necessary, its loss. Furthermore, specific tax problems may be encountered in the daily management of the tax group concerning certain internal operations or else in the flow of goods or services exchanged between affiliated companies established in the EU.
Our services include in particular:
• The constitution of the group consolidated for tax purposes;
• Assistance in the resolution of management problems of the fiscal group;
• Assistance concerning questions relating to tax integration raised during an inspection

International

Developing your activity in France as a foreign company
About you
You are a foreign company and want to expand a business activity in France. You are a foreign company and want to explore the French market.
You are a foreign company with a large amount of business in France and want to set up a permanent establishment there.
Against this background, you want to explore your legal and tax obligations in France.

Taxation in France
When a foreign company wants to expand or establish its business in France, it needs to think about the most suitable legal and tax form for its project. What do you need to consider? Here are a few avenues to explore when defining your project.
What legal form can I adopt for my business?