Request a CET 2022 rebate from the EIS

The good news is that if the amount of your 2022 territorial economic contribution (CET) exceeds 2% of the added value produced by your company, you can obtain a tax rebate by expressly requesting one from your local business tax office (Service des Impôts des Entreprises - SIE).

What is the CET and who can benefit from it?

The contribution économique territoriale (CET) is a local tax that includes the contribution foncière des entreprises (CFE) and the contribution sur la valeur ajoutée des entreprises (CVAE).

All companies subject to the CET may be eligible for its capping, regardless of their sales or the nature of their business. In such cases, they may be eligible for a rebate under the value-added ceiling (PVA).

As a general rule, the rebate applies to the CFE, although the amount of CET outstanding cannot be less than the minimum CFE contribution.

For 2022, the CET cap is set at 2%, but the Finance Bill for 2023 plans to reduce it to 1.625%, then to 1.25% from 2024.

How is added value determined?

The value added retained by the tax authorities corresponds to the value produced:

  • or during the year for which the company is taxed if its accounting period coincides with the calendar year;
  • or during the last 12 months of the year, if this does not coincide with the calendar year.

What is the procedure for claiming the CET rebate?

You must expressly request this no later than December 31, 2023. From the date you submit your request, the tax authorities have 6 months to grant it.

To perform this query, you must use :

However, if your fiscal year coincides with the calendar year, the amount of the expected PVA can be deducted, on a provisional basis, from your CFE balance due no later than December 15, 2022. To do so, you must provide a dated and signed declaration indicating the calculation method you have used.

You are entirely responsible for the amount of this deduction. In the event of an error, you will be liable to a 5% surcharge and interest on any unpaid amounts. However, the tax authorities will not apply any penalty if the deduction does not exceed the amount of the rebate obtained the previous year.

Good to know: if you have not yet sent your request for the capping of the territorial economic contribution based on value added for 2021 to your local SIE, you have until December 31, 2022 to do so.