A company can make a request for remission or moderation when it has difficulty paying its taxes. This is not a challenge to the tax payable, but rather a remission of part or all of the amount due.

The remission or moderation of a tax is reserved for companies who are most in trouble. It usually occurs after payment periods have been granted to help the company cope with its difficulties.

The delivery corresponds to total abandonment of a tax, moderation as for it corresponds to a partial remission of tax.

The aim of debt relief should be to facilitate the financial restructuring of the company in difficulty, the continuation of its economic activity and the maintenance of jobs. Thus, when the company is no longer viable, no rebate or moderation can be granted.

The tax authority may grant discounts or moderations on the following:

• Tax when the company is unable to pay due to financial difficulties
• Tax fines, definitive tax increases or prosecution costs

Not all taxes can be remitted or moderated.

For example, the following taxes cannot be discounted or moderated :

• Registration fees
• Real estate wealth tax (IFI)
• Property Advertising Tax
• Stamp duty
• Turnover tax (e.g. VAT, contribution on non-alcoholic beverages, etc.)
• Withholding tax

The company in difficulty or a representative may apply for a discount or surcharge. The application must be made to the company Tax Office (SIE) on which the company depends.

It can be a written request by post or oral on an appointment with a counselor.

The request must be made to individual security and be signed by the person who drafted the application.

It must contain the information necessary to to identify the taxation for which the company wishes to have a discount or moderation. It must be accompanied by one of the following documents:

• Tax Notice or a copy of this notice or role extract
• Notice of assessment or a copy of this notice

The request cannot be made only after the tax has been collected (time the tax is payable) to which the remission or moderation application relates.

The tax administration has 2 months to respond to the company's request. In the absence of a reply, the request shall be considered to be rejected.

Where the request of the company is more complex, this period may be extended to 4 months. The administration shall then inform the company of the increase in the period.

The tax authority may give one of the following answers:

• Rejection
• Discount or Moderation
• Conditional delivery or moderation. It may require the company to pay certain taxes which remain chargeable before the rebate or moderation is granted. It may also ask the company to update its reporting obligations before granting a rebate or moderation.