Creation of a VAT group
Businesses subject to VAT, established in France, which, although legally independent, are closely linked to each other in financial, economic, and organizational terms, may, optionally, form a VAT group (called a “single taxable entity”). This option must be formulated no later than October 31 of the year preceding its application. Thus, to create a VAT group from January 1st, 2024, the option must be notified to the tax authority no later than October 31, 2023. Knowing that the option covers a mandatory minimum period of 3 years. It will therefore apply until December 31, 2026.
Loss of half of the share capital
A company, whose equity has become less than half of its capital, must reduce its share capital within the period required by law. The minimum threshold to which it must reduce its capital, to avoid the risk of dissolution, has just been set. Thus, for LLCs(1) and Simplified PLCs(2), this threshold is equal to 1% of the company’s balance sheet total, recorded at the last year-end. For PLCs(3), it is equal to the higher of 1% of the company’s balance sheet total, recorded at the last year-end, and €37,000 (minimum amount of share capital for SAs).
Birth and adoption of a child
Employees and self-employed persons may receive daily allowances paid by the Social Security (or the Agricultural Mutual Assistance Fund(4)), in the event of maternity, adoption and paternity leave and childcare, on condition, in particular, to justify a minimum period of affiliation to the Social Security (or the Agricultural Mutual Assistance Fund),) on the presumed date of the child’s birth, on the date of arrival of the child in the home in the event of adoption or on the date of the beginning of paternity and foster leave for the child. This minimum period of affiliation has just been lowered from 10 to 6 months, regardless of the leave concerned. This measure applies to leave that begins on or after August 21st, 2023.
New rights for women who have suffered a miscarriage
A recent law improves compensation for women who have suffered involuntary termination of pregnancy (known as “miscarriage”) before the 22nd week of amenorrhea. Currently, women (employees, self-employed women, non-salaried agricultural workers) on sick leave following a miscarriage receive daily allowances from Social Security, in principle, after a waiting period of 3 days. This waiting period will soon be abolished for involuntary terminations of pregnancy that occur before the 22nd week of amenorrhea. This measure will apply to work stoppages prescribed on or after a date that must still be decided by decree no later than January 1st, 2024.
(1) SARLs (Société À Responsabilité Limitée)
(2) SASs (Société Anonyme Simplifiée)
(3) SAs (Société Anonyme)
(4) Mutualité sociale agricole (MSA)
