November 30, 2021

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CET 2021: a reduction so as not to pay too much!

Depending on the added value produced by your company, you can benefit from a territorial economic contribution (CET) relief. Remember that the CET is made up of the business property contribution (CFE) and the business value added contribution (CVAE).

The determination of the tax relief

When the sum of your CFE and, where applicable, your CVAE exceeds a certain percentage of the added value produced by your company, this excess may give rise to a reduction. A percentage that has been revised downwards for the first time this year. In fact, within the framework of the reform of production taxes and the halving of the CVAE, the rate of the cap of the CET according to the added value was reduced from 3 to 2% from the taxes due to the title of 2021.

Note: in principle, the allowance is charged to the CFE. The remaining CET must not, however, fall below the minimum CFE contribution.

To benefit from the CET 2021 rebate, you must expressly request it, no later than December 31, 2022. Once the request has been filed, this rebate is granted by the tax authorities within 6 months.

In practice: this request can be made using the form n ° 1327-CET, addressed to the tax service responsible for your company.

An early deduction

If your financial year coincides with the calendar year, you will have to wait for the closing of the accounts to formulate your request. However, the relief estimated for 2021 can be provisionally charged to your CFE balance on December 15, provided that, when paying this balance, you submit a dated and signed declaration indicating the method of calculation of the charge.

But beware, this deduction is your responsibility. In other words, in the event of error, an increase of 5% and a late interest will apply to the unpaid sums. By tolerance, the tax administration nevertheless admits, without penalty, the imputation of the amount of relief obtained the previous year.

Namely: if it has not already been done, it is not too late to claim the reduction of your CET 2020 since the request can be sent until December 31, 2021. Remember that, for this tax, the rate of cap was still 3%.