Businesses: How to Use a Tax Credit or Refundable Balance

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If your business has a credit balance with the French tax authorities, this is known as a tax receivable. It can result from a refundable tax credit or an overpayment. But how does it work, and can it be used to settle your taxes? Here’s what you need to know.

When Does a Tax Receivable Apply?

Tax receivables concern professionals who have a surplus with the tax administration. This excess may come from:

  • A VAT credit,

  • An overpayment of corporate tax or payroll tax,

  • A refundable tax credit (e.g., research and development, training, or loss carryback),

  • A refund following a claim or a tax relief decision.

Which Taxes Can Be Offset Using a Tax Receivable?

You may use a tax receivable to offset business taxes that are collected by the Corporate Tax Office (SIE).

In certain cases, businesses can request an immediate refund instead. This option is available to:

  • Young innovative companies (JEI),

  • Newly established businesses,

  • SMEs (as defined by EU rules),

  • Companies facing financial difficulty.

More information is available on the official tax website.

How to Apply Your Tax Receivable Toward Tax Payments

To use a tax receivable for payment, you must complete Form No. 3516-SD.

Here’s the procedure:

  1. Submit Part 1 of the form with your request for reimbursement or offset—at least 30 days before the due date of the tax to be paid.

  2. Retain Part 2 of the form and submit it just before the tax due date, using your secure messaging system on the professional tax portal. Send it to your SIE before the payment deadline.

Once your application is reviewed:

  • If approved, your tax due will be reduced by the amount of the receivable.

  • If your receivable exceeds the tax due, the remaining balance will be refunded to you.

  • If it’s lower than the amount owed, you’ll need to pay the difference when submitting Part 2 of the form.

💡 Note: If the first part of the form is submitted late or incorrectly, the request can be denied. In that case, your receivable will either be refunded or deferred for use against a future tax deadline.