+ 44 (0) 1844 218 957
+ 44 (0) 1844 218 956
Specialists for individuals and small businesses in:
French Tax Administration Services
French Tax Planning
UK Tax Administration Relating to French matters
French Tax Administration Services
French Tax Planning
UK Tax Administration Relating to French matters
The EU Fourth anti-money laundering Directive and French property Ownership
There is a new one off declaration for controlling shareholders of French registered companies , including SCIs.
The implementation into French law of the 4th EU Anti Money Laundering (AML) Directive (1) , which became effective in June 2017. The French interpretation of the directive requirements has resulted in a sporadic, potentially one-off, disclosure requirement for all private(2) companies which were licensed at the Régistre de Commerce et des Sociétés prior to 01/08/2017.
This a requirement for any SCI registered before 01.08.17
The obligation revolves around the requirement to disclose the controlling, end-beneficiaries of the company.
What is a controlling end beneficiary?
A controlling end beneficiary is, ultimately, an individual, (i.e. person) who effectively controls, whether directly or indirectly, at least 25% of the shares or at least 25% of the voting rights in the French registered company.
How and When should the disclosure be made?
How and When should the disclosure be made?
The disclosure is made by completion of a pro-forma declaration, (form DBE-S), which, technically, should have been submitted voluntarily by the SCI to its local Greffe by the 1st April this year.
Since the French legislation introduced a requirement on each Greffe (3) to carry out a formal check, some offices may have already sent out correspondence to the registered French SCI address in the last quarter of 2017 or the first quarter of this year but this won’t always have been the case.
In any event, the fact that you may not have heard from the Greffe does not absolve you of the base requirement to make the disclosure.
Although we are now past the technical deadline date for the declaration, we do not anticipate any penalties being applied at this stage if the SCI has not yet received notification from the Greffe . Nonetheless, if you have not yet completed the declaration, whether or not you have already heard from the local Greffe, we strongly recommend that you do so sooner rather than later. To do so you need to:-
a). Download the DBE-S-1 form here, completing it for the primary controlling end beneficiary
b). If relevant, download the DBE-S-2 form here, completing one for each additional controlling end beneficiary
c). If any controlling benefit is indirect, (e.g. as a result of a controlling shareholding in a company which itself is a shareholder of the SCI) then you also need to download and complete a DBE-S-Bis form
d). Once the forms are completed and signed off, send these to the local Greffe (3) responsible for your SCI together with a cheque for €54,42 made payable to “le Greffier”
b). If relevant, download the DBE-S-2 form here, completing one for each additional controlling end beneficiary
c). If any controlling benefit is indirect, (e.g. as a result of a controlling shareholding in a company which itself is a shareholder of the SCI) then you also need to download and complete a DBE-S-Bis form
d). Once the forms are completed and signed off, send these to the local Greffe (3) responsible for your SCI together with a cheque for €54,42 made payable to “le Greffier”
Is the declaration an annual requirement?
No. In most cases this will be a one-off event, however future declarations will be required if the controlling beneficiaries change or the extent of control changes.
Examples include:
• Changes to shareholding allocations due to purchase, inheritance or lifetime gifting
• Changes to voting rights
• Conversion of loan capital into share capital
• Changes to voting rights
• Conversion of loan capital into share capital
How can CHFTS help & What do we charge?
Our French branch would be very happy to complete this work for you, although – due to workload and resources - we would only be able to commence this work in July, once we have completed and met the deadlines for the annual French tax returns.
Our fixed fee for completing the declaration(s) is €150 TTC (or £135 if paying in £).
Should you wish to proceed, please contact our office to receive our letter of instruction and forward this together with the following documents :
Our fixed fee for completing the declaration(s) is €150 TTC (or £135 if paying in £).
Should you wish to proceed, please contact our office to receive our letter of instruction and forward this together with the following documents :
1) A cheque for €150 or £135 made payable to Charles Hamer French Tax Services
2) a cheque made payable to “Le Greffier” for €54,42
3). Copy of the SCI Kbis
4). Copy of latest SCI statuts
5). The latest SCI 2072 declaration.
2) a cheque made payable to “Le Greffier” for €54,42
3). Copy of the SCI Kbis
4). Copy of latest SCI statuts
5). The latest SCI 2072 declaration.
If you don’t know what one or more of these items are, don’t worry, simply return the instructions and the cheques and we will contact you directly.
Notes to the above
1 Directive EU 2015/849.
2 For example a company not listed on the stock exchange.
3 Technically a failure to disclose or in accurate disclosure is subject to 6 months imprisonment and a fine of 7500E, however, we do not anticipate this being applied for late declarations submitted voluntarily within 6 months of the 01.04.18 deadline particularly if the SCI has not previously received from the greffe a request for the declaration.
3 Technically a failure to disclose or in accurate disclosure is subject to 6 months imprisonment and a fine of 7500E, however, we do not anticipate this being applied for late declarations submitted voluntarily within 6 months of the 01.04.18 deadline particularly if the SCI has not previously received from the greffe a request for the declaration.
