TLDR: If a tax credit was granted on expenses initially considered unrecoverable and the customer later pays, a tax clawback is applied within five years. The amount of the clawback depends on the type of tax credit and the circumstances of the repayment. No clawback is applied if the repayment follows a loss that occurred after the expenses were paid or, for certain credits, if the repayment is linked to Article L. 515-19 of the Environmental Code.
General principle of tax clawback
If there is a full or partial repayment, within five years, of expenses that gave rise to a tax credit, the beneficiary is subject to a tax clawback. This is calculated in the year of repayment and is limited to the amount of the tax credit obtained.
Calculation methods for the clawback
The tax clawback can take several forms depending on the type of tax credit:
- Difference between the tax advantage initially granted and that determined on the basis of the expense actually incurred (applicable to certain tax credits).
- 40% of the repaid amount (for other specific tax credits).
- Amount of the tax advantage granted in respect of the repaid sum (for other cases).
Exceptions to the tax clawback
No clawback is applied if the repayment follows a loss that occurred after the expenses were paid. For certain tax credits, this exception also extends to repayments made under Article L. 515-19 of the Environmental Code.
Deadline and scope
The clawback applies only if the repayment occurs within five years from the payment of the expenses. The specific rules for each type of tax credit determine the exact calculation method of the clawback.
Special cases and clarifications
The clawback methods vary according to the applicable articles of the French General Tax Code (CGI). For example, Articles 200 quater, 200 quater A, and 200 quater C provide for distinct mechanisms, but all are governed by the five-year deadline and the exceptions mentioned.
Declarative obligations
The clawback is applied within the limit of the tax credit initially obtained.