The scheme, included in Decree No. 2020-987 of August 6, 2020, is intended for micro, small and medium-sized enterprises and individual entrepreneurs who have suffered from the effects of COVID-19.
The commercial activity of persons applying for benefits must begin no later than December 31, 2019. Such persons must meet their tax reporting obligations in a timely manner. Such companies must have fewer than 250 employees on the date the claim is filed. Their turnover for the last financial year must not exceed 50 million euros and their balance must not exceed 43 million euros.
The same conditions apply to those who are taxable under the tax consolidation regime of section 233A.
The applicant must also confirm that it has requested a deferred payment or additional funds from its private lenders, except for government-guaranteed loans, to pay off debts owed and payable between March 1, 2020 and May 31, 2020.
The plan covers VAT and withholding tax due from February to April 2020, which was due from March to May 2020. It also covers the balance of the corporate tax and value-added contribution (CVAE), which was due to be paid between March and May 2020.
Tax debtors will be given up to 36 months to pay a tax debt.