IFER: the flat-rate tax on network companies
IFER affects certain companies in the energy, rail and telecommunications sectors, depending on the installations they operate in France. Here is how to identify, file and pay it.
What is IFER?
The flat-rate tax on network companies (IFER, imposition forfaitaire sur les entreprises de réseaux) is a local tax calculated on a flat basis from the number or capacity of certain installations, not from rental value or profit. It is collected for local authorities.
It is separate from CFE, CVAE and property tax, although one operator may be subject to several of them.
Which installations are concerned?
IFER has several components, depending on the sector and type of installation. The authority distinguishes in particular:
- wind turbines and tidal turbines;
- photovoltaic or hydraulic electricity production plants;
- electrical transformers;
- radio-electric stations (for example mobile phone antennas);
- rolling stock used on the national rail network for passenger transport;
- main distribution frames of the copper local loop and electronic communications networks in optical fibre and coaxial cable.
Each component has its own thresholds, rates and rules, set by law and updated. They are not detailed here: refer to the official documentation for the year concerned.
Who is liable, including foreign companies?
The operator of the installation on 1 January of the tax year is liable. An EU company operating a wind farm, a solar plant, a network or antennas in France may therefore be concerned even with no other structure in France. A foreign operator should make sure its installations are correctly declared with the competent office.
To see whether these installations create an establishment in France, read the article on permanent establishment.
Filing and payment
Source: official sheet CET and IFER on impots.gouv.fr (in French).
Common mistakes
- Not declaring the commissioning of a new installation or its transfer to another operator.
- Applying a rate or threshold from a previous year.
- Forgetting the June instalment, with surcharges: see penalties and late-payment interest.
- Not checking notices when an installation was stopped or sold during the year.
How Hanoutax helps
Hanoutax, a tax mandatary acting under a written mandate, can list the installations concerned with you, prepare the 1447-M returns and annexes, check notices, monitor deadlines and prepare a claim where there is an error (see tax relief and claims). The scope is set by the power of attorney with the tax authorities.
FAQ
Does IFER concern all businesses?
No, only certain businesses operating energy, rail or telecommunications installations that fall within the components set by law.
How is IFER calculated?
On a flat basis, according to the number, capacity or category of installations, with a rate specific to each component.
When must I file?
For a creation, change, closure or change of operator: by the second working day after 1 May at the latest.
Is there an instalment?
Yes, on 15 June if the previous year’s amount reached €3,000. The balance is due on 15 December.
Is a foreign company operating a solar farm in France concerned?
If the installation falls within a component and it is the operator on 1 January, yes. The analysis depends on the capacity and nature of the installation.
Does Hanoutax determine the applicable rate?
We check the return and notice against the rules in force; the rate is set by law.
Informational content, which does not constitute legal advice. The rules that apply depend on your situation.