On Apr. 11, FR Tax updated on transitional reporting and payment.
FR Tax updated on transitional reporting and payment procedures for new tax on capital reductions following repurchase by certain companies of their own shares.
Overview
Art 95 of 2025 Finance Act introduces a tax on capital reductions via the cancellation of securities resulting from a repurchase by companies of their own shares.
In terms of time, tax is broken down: one-off tax, applicable to all capital reduction operations carried out between Mar. 1, 2024 and Feb. 28, 2025.
A permanent tax codified in art 235 ter XB of General Tax Code (CGI), applicable to all capital reduction operations carried out from Mar. 1, 2025.
These taxes are applicable to companies whose headquarters are in France, having achieved, during last financial year, turnover excluding taxes (as shown in consolidated or combined accounts, where applicable) greater than €1 billion.
Unlike one-off system, permanent tax is applicable to each successive transaction.
The reporting and liquidation procedures are detailed in table embedded in release.
Forms 3310A-SD, 3310-CA3G-SD and 3517-S-SD (CA12) allow declaration of this new tax and will be available online from Jul. 1, 2025.
Taxpayers who must declare, pay mentioned tax before Jun. 30, 2025, must send their business tax office form 3310A-SD or 3517-S-SD, downloadable from website, along with corresponding payment, must complete line 51 (3310A-SD) or 4N (3517-S-SD).
Effectiveness
New forms available Jul. 1, 2025 but some taxpayers must send data before Jun. 30.
