Government and other measures impacting real estate in France

1. Emergency law to deal with the COVID-19 epidemic

On 23 March 2020, French Parliament adopted Act n° 2020-290 titled “emergency law to deal with the COVID-19 epidemic”.

This law authorises the French government to take by ordinances measures ordinarily falling within the scope of the law, without consulting or voting in Parliament, until 24 June 2020.

These ordinances may come into force retrospectively, as of 12 March 2020.
To date, the national health emergency has been declared for a period of two months from the entry into force of the law.

After having initially retained an expiry date of 24 May 2020 at midnight for the national public health emergency, by an ordinance n°49903 of 10 April 2020, the French Council of State has now retained an expiry date of 23 May 2020 at midnight. The Ministry of Justice adopted the same interpretation in a circular dated 17 April 2020 specifying that “the duration of the national public health emergency shall expire on 24 May at 0 hour (…)”. The 24 of May is therefore excluded from the duration of the national public health emergency.

2. Leases

2.1. Business and commercial premises

Article 11. I. 1° g) of the emergency law empowers the government to “take any measure to postpone in full or spread out the payment of rent, water, gas and electricity bills relating to business and commercial premises and to waive financial penalties and suspensions, interruptions or reductions in supplies that may be applied in the event of non-payment of these bills, for the benefit of very small businesses, within the meaning of decree no. 2008-1354 of 18 December 2008, whose activity is affected by the spread of the epidemic”.

Ordinance n° 2020-316 of 25 March 2020 relating to the payment of rent, water, gas and electricity bills for the business premises of companies whose activity is affected by the spread of the COVID-19 epidemic, provides that:

• The measures provided by the ordinance benefit companies eligible for the solidarity fund (fonds de solidarité).

• Decree n°2020-371 of 30 March 2020, amended by decrees n°2020-378 of 31 March 2020, n°2020-394 of 2 April 2020 and n°2020-433 of 16 April 2020, relating to the solidarity fund specifies the conditions of eligibility for said fund. The solidarity fund benefits natural persons (self-employed workers, artists-authors, etc.) and legal persons under private law (companies, associations, etc.) carrying out an economic activity and meeting the following main conditions:

• an activity started before 1 February 2020 and the absence of judicial liquidation on 1 March 2020;

• a workforce of no more than 10 employees;

• a turnover excluding tax during the last financial year ended of less than one million euros;

• they are not controlled by a commercial company;

• the applicant must (i) have been subject to an administrative ban on receiving the public between 1 March and 30 April 2020, or (ii) have suffered a loss of turnover of at least 50% during this period in relation to the previous year (or in the case of April, in relation to the average monthly turnover for the year 2019), or for businesses created after 1 March 2019, in relation to the average monthly turnover for the period between the date of creation of the business and 29 February 2020.

Until the date of cessation of the national health emergency, eligible businesses:

• will not have their electricity, gas and water supplies interrupted or suspended from the entry into force of the ordinance until the date of cessation of the national health emergency;
• will be allowed to ask for the payment of electricity, gas and water bills to be staggered over the same period without penalty.
  Eligible businesses may not incur the application of financial penalties or interest for late payment, damages, periodic penalty payments, the enforcement of termination clauses, penalty clauses or any clause providing for forfeiture, or the activation of guarantees or suretyships (cautions), due to non-payment of rents or rental charges relating to their business and commercial premises.

These provisions apply to rents and rental charges due for payment between 12 March 2020 and the expiry of a period of two months after the date of cessation of the national health emergency.

Further information:

In a press release dated 20 March 2020, associations and federations representing landlords called on their members to put in place support measures for their very small (VSE) and small and medium (SME) tenants, in particular:

For VSEs and SMEs belonging to one of the sectors whose activity has been interrupted pursuant to I of article 1 of the order of 15 March 2020:

• recover rents and charges monthly instead of quarterly;
• suspend the collection of rents and charges as of 1 April 2020 and for subsequent periods of cessation of activity imposed by the order, then set up a deferred payment or deferral without penalty or late payment interest when activity resumes.

Examine the situation of businesses whose activity has not been interrupted but has been strongly degraded by the crisis on a case-by-case basis with goodwill.

In a press release dated 25 March 2020, seven trade federations called on landlords to reinforce the measures envisaged to date and in particular to guarantee the pure and simple cancellation of rents and charges during the closure period imposed in application of I of article 1 of the order of 15 March 2020.

In a press release dated 9 April 2020, the National Council of Shopping Centres (Conseil National des Centres Commerciaux (CNCC)) recommended four new measures to its members, in addition to those contained in the press release of 20 March 2020, namely :

• Spread the rents and charges of April and May 2020, of small shops as defined by ordinances 316 and 317 of 25 March 2020 and decree 371 of 30 March 2020, over a long period of 24 months from 1 July 2020 to June 2022, without interest or penalty.
• That the major international and national multi-brand retailers strictly respect their long-term contractual commitments and pay their rents and charges, especially since they can benefit from the monthly payment recommended on 16 March 2020 (CNCC press release);
• For mid-sized companies in the most stressful situations, the CNCC encourages landlords to take steps to reduce their cash flow pressures. The CNCC notes, however, that charges will have to be paid on the contractual dates as they are actual costs incurred by the landlords.
• The CNCC indicates that it would be legitimate for the deferred rental payments generating a claim to be covered by the national State-guaranteed loan scheme. The CNCC adds in this sense that it reminds the State and local authorities of its request for a blank year in the progression of the various property taxes and "production" taxes as well as an appropriate treatment of these same taxes during closures, prorata temporis.
• Lastly, the CNCC encourages landlords to allocate a portion of rent receipts from large retailers and medium-sized businesses in good standing to additional individual measures in favour of the most vulnerable tenants.

On 16 April 2020, the French Minister of the Economy Bruno Le Maire, declared:

• to have asked the "big landowners" to cancel three months' rent for very small businesses with less than ten employees that have been forced to close;
• to have asked said landowners to enter into negotiations with the large retail chains in order to study a reasonable spread of rent; and
• that in the case of independent businesses not protected by a large group or holding company, it should be possible to consider cancelling rent by mutual agreement with the landlords.

In a press release dated 17 April 2020, associations and federations representing landlords called on their members:

• Concerning their VSE tenants belonging to one of the sectors whose activity is interrupted in application of the order of 15 March 2020, to grant a cancellation of three months' rent, excluding charges that will remain due (corresponding to real costs incurred by the landlords).
  These associations call on their members to take these measures automatically, without consideration of the situation of the VSE companies concerned.
• Concerning other companies weakened by the crisis, these associations ask their members to enter into discussions with their tenants in difficulty to reduce the pressure on their cash flow by adapting the response and the adjustments that could be granted on a case-by-case basis.
• Finally, these associations call on the trade federations to draw up with them, under the aegis of the Minister of the Economy Bruno Le Maire, a code of good conduct for relations between landlords and commercial tenants in the current economic crisis situation.

The purpose of this code would be to provide a framework for discussions between the parties by mutual agreement. A mediator would be appointed by the Minister of the Economy to ensure the proper application of the code and the amicable settlement of disputes that may arise between landlords and tenants.
In a press release dated 18 April 2020, 16 trade federations considered the announcements made by the government and landlords to be insufficient. According to them:

• The measures should not be limited to very small businesses.
• The landlords concerned should not be the only large landowners who mainly own shopping centres.
• The measures should not only concern the period of closure but also the recovery period, which will be very gradual.
• Consequently, these federations reiterate their initial requests, namely the cancellation of rents during the closure period and their indexation to the reality of the activity in the months to come as from their reopening.

2.2. Residential premises

Article 11. I. 1° e) of the emergency law empowers the government to take any measure to adapt the provisions governing the winter truce.

Ordinance n°2020-331 of 25 March 2020, relating to the extension of the winter truce, provides in particular for the extension of the winter truce until 31 May 2020.

3. Construction

No text has yet been announced by the French government regarding the construction sector, which has been affected by the health crisis.

Further information:

A good practice guide titled "Guide to health and safety recommendations for the continuity of construction activities during the outbreak of COVID-19" was published on 2 April 2020 by the interprofessional organisations of the construction sector and provides all companies in the sector with a series of urgent measures to ensure satisfactory health conditions on construction sites and to continue their activities.

This guide was updated on 10 April 2020 in order to incorporate a notice from the French National Agency for Medicines and Health Products Safety (Agence Nationale de Sécurité du Médicament (ANSM)) specifying new recommendations for the use of protective masks, particularly for operations requiring the presence of several operators in close proximity.

This guide has been approved by the Ministries for Ecological and Solidarity Transition, Urban Affairs and Housing, Solidarity and Health, and Labour.

The guide expressly states that "companies must strictly comply with the recommendations of this guide throughout the confinement period decided by the authorities, and if they are unable to do so, stop their activity on the works concerned".

This guide highlights the role of the project owner, the project manager and especially the safety and health protection coordinator (CSPS):

• it provides for the signature of a good practice sheet and checks on the conditions under which the worksite will continue, signed by the project owner and the builder;
• it remains, however, subject to the good will of the parties in the absence of a legislative and regulatory mechanism imposing its application.

The guide specifies that "in cases where the special conditions linked to the COVID-19 epidemic would lead to delays in construction sites or delivery of the work, due to the impossibility of implementing the provisions, the government will take the necessary measures by ordinance to provide, where appropriate, for the waiver of penalties applicable to suppliers, construction site workers and private owners, for a period taking into account the duration of the health emergency period. These measures will complement those already taken by the ordinances of 25 March 2020 on various measures to adapt the rules of awarding, procedure or execution of contracts subject to the public procurement code".

4. Planning permits

Article 11. I. 2° a) of the emergency law empowers the government to take any measure to adapt "the time limits and procedures applicable to the filing and processing of declarations and applications submitted to the administrative authorities, the time limits and arrangements for consulting the public or any body or authority prior to the taking of a decision by an administrative authority and, where appropriate, the time limits within which such a decision may be taken or may arise, as well as the time limits for the carrying out by any person of inspections, works and requirements of any kind imposed by laws and regulations, unless they result from a court decision".

Ordinance no. 2020-306 of 25 March 2020, relating to the extension of time limits that have lapsed during the health emergency period and the adaptation of procedures during this same period, provided for the adjustment of lapsed time limits during the "Legally Protected Period" (the period between 12 March 2020 and the expiry of a period of one month from the date of cessation of the national health emergency, i.e. at midnight on 23 June 2020, to date) and the adaptation of procedures initiated during this same period.

However, the initial text has been subject to a number of criticisms in fear of paralysis in the construction sector. These criticisms prompted the government to issue a new amending ordinance n°2020-427 on 15 April 2020 modifying the initial ordinance, which now provides that:

• The time limits applicable to appeals and prefectoral referrals against a decision of non-opposition to a prior declaration or a building, development or demolition permit, which have not expired before 12 March 2020, are suspended until the end of the national health emergency (i.e. up to and including 23 May 2020) for the period remaining on 12 March 2020, without this period being less than seven days.
• The time limits for processing applications for planning permission and town-planning certificates and for prior declarations that have not expired before 12 March 2020 are suspended until the end of the national health emergency (i.e. up to and including 23 May 2020). These deadlines therefore resume as of 24 May 2020.

The same rules apply to the time limits for public entities to issue an opinion or give an agreement in connection with the examination of a request or declaration referred to above.

• The time limits relating to pre-emption procedures, following which a decision, agreement or opinion may or must be reached or is implicitly acquired and which have not expired before 12 March 2020, shall be suspended until the end of the national health emergency (ie up to and including 23 May 2020) for the period remaining on 12 March 2020.
• The starting point of similar time limits which should have started to run during the period between 12 March 2020 and the end date of the health emergency shall be postponed until the end of the health emergency.
• Authorisations, permits and approvals whose term expires during the Legally Protected Period are automatically extended until the expiry of a period of two months from the end of this period.
• When they have not expired before 12 March 2020, the time limits imposed by the French administration on any person to carry out controls and work or to comply with prescriptions of any kind are suspended until the end of the Legally Protected Period (ie at midnight on 23 June 2020), except when they result from a court decision. The starting point for time periods of this nature which should have started to run during the Legally Protected Period will be the expiry of this period.

5. Extension of contract deadlines

Ordinance n° 2020-306 of 25 March 2020, relating to the extension of time limits during the Legally Protected Period and the adaptation of procedures during the same period, as amended by ordinance n°2020-427 of 15 April 2020 laying down various provisions relating to time limits for dealing with the COVID-19 epidemic, provides that:

• periodic penalty payments, penalty clauses, termination clauses and clauses providing for forfeiture, where their purpose is to sanction non-performance of an obligation within a specified period, shall be deemed not to have come into force or to have taken effect, if that period has expired during the Legally Protected Period;
• if the debtor has not performed his obligation, the date on which these periodic penalty payments take effect and these clauses produce their effects is postponed for a period calculated after the end of the Legally Protected Period, equal to the time elapsed between, on the one hand, 12 March 2020 or, if later, the date on which the obligation arose and, on the other hand, the date on which it should have been performed (see illustration below);
• the date on which these periodic penalty payments take effect and these clauses take effect, when their purpose is to sanction the non-performance of an obligation, other than the payment of sums of money, within a given period expiring after the Legally Protected Period, is postponed by a period equal to the time elapsed between, on the one hand, 12 March 2020 or, if later, the date on which the obligation arose and, on the other hand, the end of the Legally Protected Period (see illustration below).
• the periodic penalty payments and the application of penalty clauses that took effect before 12 March 2020 are suspended during the Legally Protected Period.

Further information:

For an illustration regarding leases: in the event of a tenant's payment default on 1 April 2020 (the usual rent payment due date for the second quarter), according to common law outside the COVID-19 legislation, a summons to pay in respect of the termination clause of the lease served on 5 April 2020 would normally take effect on 5 May 2020, i.e. one month after 5 April.

However, as a result of the provisions of this ordinance, this one-month period will be postponed after the Legally Protected Period (ie after 23 June 2020, to date) and the effect of the termination clause will be suspended until 23 July 2020. As a result, the tenant could regularise its arrears until midnight on 23 July 2020.

For an illustration in construction: in the case of a construction contract entered into before 12 March 2020 providing for the completion and delivery of works at a date later than the expiry of the Legally Protected Period (ie after 23 June 2020, to date), any penalty clause (in particular the usual penalties for delay) sanctioning a possible delay in completion will only take effect upon the expiry of a new period of 104 days (i.e. the number of days elapsed between 12 March 2020 and 23 June 2020).

Ordinance n° 2020-306 of 25 March 2020 also provides that when an agreement can only be terminated during a specified period or is renewed if it is not terminated within a specified period, this period or term is extended if it expires during the Legally Protected Period, by two months from the end of this period.

6. Real estate sales

The initial ordinance n° 2020-306 of 25 March 2020 relating to the extension of time limits that elapse during the Legally Protected Period and the adaptation of procedures during this same period, provided that any act, appeal, legal action, formality, declaration, sanction, statute of limitations claim, lapse, automatic withdrawal, application of a special scheme (...), nullity or forfeiture of any right whatsoever and which had to be carried out during the Legally Protected Period, will be deemed to have been made in time if it was made within a period which may not exceed, as from the end of this period, the time legally allowed to act, within a limit of two months.

However, the amending ordinance of 15 April 2020 containing various provisions relating to time limits for dealing with the COVID-19 epidemic clarified that these provisions do not apply to the periods of reflection, withdrawal or waiver provided for by law or regulation, nor to the periods provided for the repayment of sums of money in the event of the exercise of these rights, thus clarifying the situation with regard to periods of reflection or withdrawal in the case of real estate sales.

Decree no. 2020-395 of 3 April 2020 authorising the remote signing of notarial deeds during the health emergency period, provides that until the expiry of a period of one month from the end of the national health emergency (i.e. until midnight on 23 June), a notary may draw up a notarial deed on an electronic medium when one or all of the parties or any other person contributing to the deed are neither present nor represented, the consent of the parties being given by means of a secure communication system and electronic signature.

7. Co-ownership

Article 11. I. 2° a) of the emergency law empowers the government to take any measure to adapt "the law of co-ownership of built immovable property to take into account, in particular, for the appointment of trustees (syndic), the impossibility or difficulties of convening general meetings of co-owners".

Ordinance n°2020-304 of 25 March 2020 adapting the rules applicable to the jurisdictions of the judicial order ruling in non-criminal matters and on co-ownership management contracts provides that the management contract which expires or has expired during the Legally Protected Period is renewed under the same terms until the coming into effect of the new contract of the trustee appointed by the next general meeting of co-owners, this coming into effect is to take place no later than six months after the date of cessation of the national health emergency.

These provisions do not apply when the general meeting of co-owners has appointed, before the date of publication of the ordinance, a trustee whose contract takes effect as of 12 March 2020.

8. Finance

8.1. Loans guaranteed by the French state

Article 6 of the amending finance law for 2020 of 23 March 2020 n°2020-289 allows companies to request the continuation or the granting of cash facilities backed by the French State, which will act as guarantor for any cash loans that companies may need.

These loans shall have a minimum amortization deferral of twelve months and a clause giving the borrower the option, at the end of the first year, to amortize these loans over an additional period calculated in years.

The award procedure will vary according to the following criteria:

• the company (registered in France) has fewer than 5,000 employees and a turnover of less than €1.5 billion, in which case the application will be processed by BPI France; or
• the company (registered in France) has over 5,000 employees or a turnover in excess of EUR 1.5 billion, in which case the application will be processed by the French Treasury and granted by the Minister for the Economy.

These guarantees may not be granted for loans taken out by sociétés civiles immobilières, credit institutions or finance companies.

The State and the Banque de France, through credit mediation, will support companies in their negotiations with banks on the rescheduling of outstanding loans.

8.2. Measures granted by BPI France

In a press release, BPI France has indicated that it is taking the following measures:

• Suspension of payment of loan instalments (capital and interest) granted by BPI France as of 16 March 2020 for a period of six months and without fees (open in particular to SMEs or ETIs, owned by more than 25% by venture capital companies).
• Guaranteeing of bank cash facilities that companies may need, up to 90% of loans of three to seven years granted by private banks and accessible to ETIs.

Furthermore, several measures are made available for direct support to companies' cash flow:

• Unsecured loans from three to five years from 10,000 to 10 million euros for SMEs to several tens of millions of euros for ETIs, with a significant deferral of capital repayment.
• Mobilisation of all invoices accompanied by a cash credit of 30% of the mobilised volumes.
• Specific loan schemes set up in partnership with the regions, such as the "Prêt Rebond" (Grand-Est Region) or the "Prêt Back'up Prevention" (Ile de France Region).
• Evolution of the factoring guarantee system for factoring companies benefiting from agreements for the benefit of SMEs, allowing the maximum outstanding amount of guaranteed receivables to be increased from €200,000 to €500,000.

8.3. Measures granted by French credit institutions

Credit institutions have announced in a press release on 15 March 2020:

• The implementation of accelerated credit appraisal procedures for tense cash flow situations, within five days and with particular attention to emergency situations.
• Deferral of credit repayments for businesses for up to six months.
• Waiver of penalties and additional costs for deferrals and credit repayments for businesses.

9. Tax

As far as tax matters are concerned, the emergency measures taken by the French government derive respectively from the French tax authorities’ activity contingency plan and from the ordinances issued under the emergency law. In addition, a series of amendments have been adopted in the draft corrective finance bill for 2020 to secure the tax treatment of rent waivers granted between 15 April 2020 and 31 July 2021 (a summary of this measure is provided in section 9.1).

These measures essentially allow French taxpayers to postpone the payment of certain taxes to preserve their cash-flows (a summary of these measures is set out below in section 9.2). In addition, one of the ordinances issued by the French government provides for the freezing of time limitations, be it in relation to tax audits or various other tax procedures (a summary of these measures is set out below in section 9.3).

All deadlines for filing tax returns and other similar declarations in May have been postponed to 30 June. These additional deadlines should enable companies and chartered accountants to meet their annual tax obligations in the current context. However, the French tax authorities’ activity contingency plan recommends that the situation of taxpayers directly affected by the COVID-19 epidemic be examined with leniency.

9.1. Tax-deductibility of rent waivers

As part of the current drafting of the corrective finance bill for 2020, amendments were adopted to allow the tax deduction of rent waivers (rental income and subletting income) granted between 15 April 2020 and 31 July 2021, in full and without any other specific requirements.

With respect to the taxation of profits, waivers of debt may normally only be deductible for tax purposes by landlords if they meet two cumulative conditions: (i) the landlord must act in its own interest (general condition) by assisting a tenant in financial distress and (ii) the tax deductibility of the waiver must be permitted by Article 39 of the French tax code (condition specifically imposed by French tax law). As this last provision currently stands, all intercompany aids and debt waivers having a commercial nature are tax-deductible, whereas intercompany aids and debt waivers having a financial nature are not deductible except, to a certain extent, those granted in the context of collective proceedings (accord constaté ou homologué, procédure de sauvegarde, redressement judiciaire, liquidation judiciaire), or foreign insolvency proceedings listed in Appendix A to the Insolvency Regulation of 25 May 2015).

The adopted amendments should comfort landlords willing to waive rents in the current context since they automatically regard as satisfied (by operation of law) the two requirements set out above.

Debt waivers can also have an impact on the management of the beneficiary company's tax losses. Indeed, the use of tax losses against taxable profits of subsequent years is essentially limited up to a limit of 1 million euros each year, plus 50% of the fraction of the profit exceeding this limit. For companies benefiting from debt waivers granted pursuant to an accord constaté ou homologué, procédure de sauvegarde, redressement judiciaire, liquidation judiciaire, the 1 million euro limit is increased by the amount of these waivers. The benefit of this increased threshold will also be extended in full to waivers of rent (rental and sub-rental income) granted between 15 April 2020 and 31 July 2021.

With regards to VAT, it is worth recalling the general rules under which rent waivers should in principle be neutral, VAT being due in principle (except for debits) only if a price has been collected. However, even if a debt forgiveness is legally equivalent to payment under French law, for VAT purposes however, case law considers that the waiver of a debt by the creditor does not lead to the collection of a payment for this creditor, meaning that the corresponding VAT does not fall due to the French treasury.

9.2. Deferred payment for certain taxes

Direct taxes (advance payments of corporate income tax, payroll tax, CFE, CVAE):

• Taxpayers may request an extension of the deadline for the payment of these taxes;
  • Deferrals are granted for a period of three months without any penalty and without any justification.
  • If the direct debit has already been made, possibility to request a refund, or oppose the upcoming SEPA direct debit if this is still possible.
• If the extensions are not enough, the French tax authorities may grant waivers for taxes on a case-by-case basis, in light of supporting documents (information regarding a fall in turnover, about other debts to be paid, difficult cash-flow situation).

For the property tax and the CFE, it is possible to suspend the monthly advance payments either online or by contacting the collection centre (CPS). The remaining balance will be debited at the expiry of the tax period, without penalties or late-payment interest.

Corporate tax and VAT credits: the French tax authorities have been instructed to process requests for the repayment refundable corporate income tax credits as soon as possible, that is to say even before the annual tax returns are filed. The French tax authorities have also been instructed to process VAT credit repayment requests swiftly.

VAT: as a matter of principle, it is not possible to postpone VAT due dates during a state of health emergency. However, the tax authorities have indicated that businesses, which cannot gather all the documents needed to file their VAT returns, are allowed to account for and pay a lump sum amount based on previous months, with additional relaxations being provided for in the event of a fall in turnover.

For the generality of companies, the monthly VAT return can filed with a simple estimate of the amount of VAT due for a month and by paying a lump sum corresponding to the amount of this estimate (with a maximum margin of error of 20%). This tolerance is initially provided for in the case of VAT returns submitted during paid holiday periods in the event of difficulties in drawing up the returns.

For companies which have suffered a drop in turnover due to the pandemic and the government measures imposed as a result (closure of businesses and shops), the French tax authorities allow, exceptionally and for the duration of the health emergency, the filing of VAT returns for the months of March and April 2020 with a paying lump sum VAT payment equal to :

• 80% of the previous month's VAT for companies still in business but having difficulties in making their returns;
• 50% or less of the previous month's VAT for businesses that show a very sharp drop in activity (50% or more).

The tax authorities have already specified that the implementation of these tolerance measures will be subject to audits after the fact, once the health emergency is over.

9.3. Tax audits and procedures

Tax audits:

Newly opened tax audits: no new on-the-spot tax audits will be carried out by the French tax authorities during the national health emergency, with some exceptions, in particular regarding procedures conducted by the Direction Nationale des Enquêtes Fiscales (the central directorate responsible for the identification and treatment of tax fraud). No new visit and seizure procedures be carried out during this period.

It should be noted that this suspension does not prevent the opening of remote tax audit procedures (examens de comptabilité) during the national health emergency.

Ongoing tax audits: the French tax authorities have recommended to its auditors to complete as soon as possible the ongoing tax audits when they are nearly completed and have not led to the identification of major tax issues. All non-urgent operations would be deferred unless the taxpayer expressly accepts to continue the tax audit under conditions that could not affect the tax auditor’s health and safety.

For the tax audits that will continue, remote-working will be possible under arrangements to be agreed between the taxpayer and the French tax authorities. In the context of exchanges with the French tax authorities, the taxpayer will be able to reply by email, and concerning the formal letters that should normally be sent through registered mails, the time limitations will be accommodated to consider the current situation and the taxpayer’s situation.

Tax procedures and litigation: the ordinance "freezes" the following procedural deadlines:

• Tax audits: the ordinance suspends the statute of limitations expiring on 31 December 2020, for a period equal to the period between 12 March 2020 and the expiry of a period of one month from the end of the national health emergency. The ordinance suspends for the same period, both for the taxpayer and for the French tax authorities all procedural deadlines related to conduct of ongoing tax audits and investigation procedures.
• Tax disputes: for proceedings already underway before French courts, all procedural deadlines which would have normally expired during the national health emergency will be extended for a period equal to the period between 12 March 2020 and the expiry of a period of one month from the end of the state of health emergency.

For new proceedings, the time limitation to introduce a claim against the French tax authorities is also extended for the duration of the national health emergency plus one month.

• Tax rulings: the time limitation for the French tax authorities to answer requests for certain types of tax rulings is also extended during the national health emergency.
• Collection of taxes, the time limitations applicable to the collection of tax debts (and the related disputes) are suspended for the duration of the national health emergency plus three months.

See our coronavirus (COVID-19) feature for more information generally on the possible legal implications of COVID-19.

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N.B. We draw your attention to the fact that the announcements made by the French Government, the ordinances, decrees and circulars, as well as the various publications made on the websites of the various public authorities are numerous and the information set out in this newsletter may already be obsolete. The measures described above must therefore all be taken with the utmost care. Please do not hesitate to get in touch with us if you have any questions on your understanding or the application of the various measures described above.