Solidarity Fund: Details and FAQs

Below is a FAQ provided by the Tax Office. The following points are explained:

- The solidarity fund is aimed to merchants, craftsmen, professionals and other economic agents, regardless of their status (society, individual entrepreneur, association...) and their tax and social system (including micro-entrepreneurs), French tax residents, having:

• A workforce of equal or less than 10 employees;
• Turnover of the last fiscal year ended less than 1,000,000 euros;
• Taxable profit of less than 60,000 euros.

Their activity must have started before February 1^st, 2020 and there must be no declaration of payment cessation until March 1^st, 2020.

On the other hand, holders of a full-time employment contract or a pension as of February 1^st, 2020 and people who received more than 800 euros in daily social security benefits in March 2020 are not eligible.

This is also the case for companies whose majority leader meets these same criteria. Similarly, companies controlled by a trading company under the article L. 233-3 of the French Commerical Code are not eligible. On the other hand, a commercial company controlling other companies can benefit from the fund, if the whole group meets the conditions of the number of employees, turnover and taxable profit mentioned above.

- For legal entities subject to corporation tax, the taxable profit considered for the threshold of 60,000 euros corresponds to the profit before IS listed on the 2065 return.

- Regarding the "sums paid" to managers, the question arose from taking into account the sums paid net of social charges (NRS or, wage and employer charges for the like-for-like employees) or the consideration of social charges. It is specified that these are the sums paid, including payroll taxes if they were deducted from the taxable profit.

- For legal entities with multiple executives, the sums paid to all the company's executives must be added to the taxable profit.

- Only one aid per entity even if there are several leaders.

- The solidarity fund will be renewed for April

 

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