The PACTE accounting measures

The Business Growth and Transformation Action Plan (better known by the acronym PACTE ) was presented to the Council of Ministers in June 2018. The parliamentary review takes place in September 2018. Accounting -Easy returns to the accounting measures of the PACTE .

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PACTE’s flagship accounting measure: raising the thresholds for statutory certification of accounts

Other PACTE accounting measures

The PACTE Law was promulgated and published in the official journal of May 23, 2019.

PACTE’s flagship accounting measure: raising the thresholds for statutory certification of accounts

The PACT plans to increase significantly the thresholds which, when exceeded, make compulsory the appointment of an auditor.

In the current context, the appointment of an auditor is compulsory for:

  • All public limited companies (SA) and limited partnerships by shares (SCA);
  • General partnerships (SNC) and limited liability companies (SARL) which exceed two of the following three thresholds: 3,100,000 euros in turnover excluding taxes, 1,550,000 euros in total assets, 50 employees;
  • Single-person (SASU) or multi-person (SAS) simplified joint-stock companies which exceed two of the following three thresholds: 2,000,000 euros in turnover excluding taxes, 1,000,000 euros in total assets, 20 employees or those who control or are controlled by another company.

The PACTE provides, for all companies , to align the legal certification thresholds for accounts with those provided for “small business” in the accounting sense. The obligation to appoint an auditor would arise when companies exceed two of the following three thresholds:

  • 4 millioneuros in total balance sheet ,
  • 8 millioneuros turnover Net,
  • And 50 employees.

Furthermore, for the assessment of these thresholds at the level of groups of companies, account should be taken of the set formed by the parent company and its subsidiaries. An exemption could apply in the event that the companies are controlled by another structure, itself forced to appoint a CAC due to the crossing of the thresholds.

These measures should come into effect on January 1, 2019. The PACTE provides that the terms of office in progress on this date would continue until their initially planned term.

Update: The new rules, adopted as they are, come into force for fiscal years ending after May 26, 2019.

Other PACTE accounting measures

The PACTE also contains other accounting measures . The latter, however, have a minor impact in terms of accounting .

The obligation to hold a dedicated bank account for micro-entrepreneurs

Currently, micro-entrepreneurs (self-entrepreneurs under the micro-BNC or micro-BIC) are required to open a bank account separate from their personal account. This account is intended to collect all professional transactions. All micro-enterprise revenues and expenses must pass through it.

The PACT plans to remove the requirement for micro-entrepreneurs realizing a turnover annually less than 5 000 euros . For those who exceed it for one year, the obligation would only come into force if it was crossed the following year.

Update: The turnover threshold triggering the obligation to open a separate bank account is no longer 5,000 euros but 10,000 euros. The measure effectively enters into force.

Follow-up of an installation preparation course for artisans

At present, a craftsman who plans to create his business must follow an installation preparation course (SPI) . This provision creates inequality with traders for whom the management initiation course (SIG) is not compulsory.

The PACT plans to restore equality between artisans and other independent workers by making it optional SPI . A craftsman will be able to start his activity when he wishes and to choose to be accompanied when he needs it.

Update: SPI is no longer mandatory as of May 24, 2019.

Registration in different business registers

Currently, there are many registers that companies must register with. This generates a waste of time as well as an additional cost for the latter (double registration).

The PACT plans, by 2021, the creation of a general register single centralizing all the information relating to companies.

 

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