The principle of tax limitation periods
A tax limitation period is the deadline beyond which the tax authority can no longer claim payment of a tax, conduct an audit, or issue a reassessment. This period, known as the "délai de reprise" (reassessment period), is governed by the Tax Procedures Code (LPF) and is designed to give taxpayers a degree of legal certainty.
For non-residents and foreign companies with obligations in France, limitation periods operate according to the same general rules. However, note: the period only begins to run once returns have been properly filed. In the absence of any filing, the administration may in theory go back much further, and the standard period offers no protection.
Deadlines by type of tax
Limitation periods vary depending on the type of tax involved. Here are the main rules applicable to non-residents and foreign companies.
| Tax concerned | Standard limitation period | Extended period (fraud / omission) |
|---|---|---|
| VAT | 3 years (Art. L. 176 LPF) | 6 years in cases of fraudulent practices |
| Corporate income tax (IS) | 3 years (Art. L. 169 LPF) | 6 years (undisclosed activity, fraud) |
| Personal income tax (IR) | 3 years (year N+1 to N+3) | 6 to 10 years depending on severity |
| Inheritance / gift tax | 6 years from the date the tax became due | Up to 10 years in cases of fraud |
For VAT, the 3-year reassessment period runs until the end of the 3rd year following the year in which the tax became due. Example: for VAT due in 2025, the DGFiP may in principle act until 31 December 2028.
Extension and interruption cases
Several situations can extend or interrupt the limitation period, sometimes significantly.
Extension to 6 years in cases of:
- Proven fraudulent practices (intentional false declaration, concealment)
- Tax abuse of rights (Art. L. 64 LPF)
- Undisclosed activity: no activity declaration and no returns ever filed
- Serious omissions revealed through judicial proceedings or international administrative assistance
Extension to 10 years in the most serious cases:
- Assets or income hidden in non-cooperative states (FATF or EU lists)
- Serious breaches of reporting obligations related to undeclared foreign bank accounts
Interruption and suspension: the limitation period is interrupted by any binding procedural act by the administration: a proposed adjustment, a tax assessment notice, or conservatory measures. It is suspended during conciliation proceedings or contentious appeals.
How to protect yourself effectively
A tax limitation period is not a defence strategy — it is a safety net for those who have fulfilled their obligations. For non-residents wishing to protect themselves against reassessments, the best approach remains proactive compliance.
1. Regularise open years. If you have unmet French VAT obligations, a voluntary regularisation for the years still within the limitation period (generally the last 3 years) is always possible. It can result in a significant reduction in surcharges.
2. Retain supporting documents beyond the legal deadlines. Even if a year has become time-barred, keep your accounting records for at least 6 years. In the event of a dispute over subsequent years, documents from earlier years may serve as a reference.
3. Appoint a tax representative from the start of your activity. The tax representative monitors returns, ensures they are filed on time, and acts as the administration's point of contact. The limitation period runs from the moment returns are regularly filed.
To ensure your compliance and secure your limitation periods, consult our list of accredited tax representatives. Their expertise protects you against late reassessments and surcharges.