We call “tax niche” an exemption provided for in the tax legislation which gives the possibility to a taxpayer to reduce the amount of his taxes compared to the framework of the general system. To benefit from it, certain conditions must be met.
A tax niche is also a loophole or void in the legislation that allows tax avoidance without being in violation.
The tax niche, called “tax expenditure” in public finance terminology, can take the form:
of deductible expenses for income or total revenue,
of tax abatement .
From a political point of view, the tax loophole can be a way to encourage taxpayers to steer their investments or their behavior in one direction or another. The niches can also be categorical offering tax advantages to certain professions or corporations that one wishes to promote, with or without electoral ulterior motives. Due to the progressive nature of income tax, the tax loopholes from which individuals benefit are, in general, more favorable to wealthy taxpayers.
We distinguish:
the vertical tax loopholes or “active” in which the taxpayer must adopt a process investor to become eligible. The tax reduction granted by the State is then the counterpart of the risk taken by the taxpayer in his investment.
Examples: industrial or rental investment niches in the French overseas departments and territories.
the horizontal niches or “passive” which the taxpayer can benefit without any particular approach, if its objective situation qualifies for this device c corp tax calculator
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Examples: the employment bonus , the exemption from the interest of the livret A.
The tax department designates the entire tax administration , that is to say the State services which are in charge of establishing the tax base, their collection and their control .
The term taxation designates the system of laws and regulations in force relating to taxation , the definition and collection of taxes and other compulsory levies.
Example: tax reform .
Taxation allows the State and local authorities to raise revenue and thus finance their public expenditure needs . Taxation is also used as a lever to guide economic policy by promoting a particular sector of activity by means of tax exemption or specific advantages (eg exemptions) granted to certain economic agents. Taxation is also how taxes are determined or distributed among taxpayers. Examples: Direct or indirect taxation, progressive taxation.
Your VAT refund request
The request for reimbursement of VAT , because it is paid in advance , can in principle be made only once a year. This request must be filed with the corporate tax service during the month of January following the calendar year concerned.
The reimbursement request must relate to a sum due greater than 150 euros.
The reimbursement request can also be made quarterly (April for the 1st quarter; July for the 2nd quarter and October for the 3rd quarter), provided that the amount due is greater than 760 euros.
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When do you have to pay VAT?
The time at which you have to remit the VAT that you have collected is different depending on the transaction. Indeed, VAT is payable:
on the date of receipt of the price or part of the price of the services,
on the delivery date for goods delivery operations,
the 15th of the month following that of the delivery of the goods or the completion of the services,
on the date of drafting of the deed of transfer for the sale of buildings.