The French government on 3 September 2020 announced a two-year €100 billion “economic stimulus plan” (known as France Relance).
The tax measures in the economic stimulus plan are intended to improve the competitiveness of French companies, and are expected to be included later this month in the draft Finance Bill for 2021 (and thus applicable with regard to taxes for that year).
The tax measures in the economic stimulus plan include a structured decrease to the territorial economic contribution (contribution economique territorial—CET) and the company property tax.
Companies engaged in a business in France are subject to the CET that is composed of two different taxes:
According to the government’s proposals, the amount of the “property tax on built-up properties” (taxe foncière sur les propriétés bâties) would be reduced for industrial facilities, and there would be relief from the CET for all companies.
Other changes to be proposed include:
The government expects that companies in industrial and retail sectors would be the main beneficiaries of the proposed tax relief.
Read a September 2020 report [PDF 136 KB] prepared by the KPMG member firm in France
For more information, contact a tax professional with KPMG Avocats in France:
Marie-Pierre Hôo | + 33 (0) 1 55 68 49 09 | firstname.lastname@example.org
Patrick Seroin Joly | + 33 (0) 1 55 68 48 02 | email@example.com
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