The French government today released a draft law that proposes to amend the already enacted and scheduled reduction of the corporate income tax rate for certain “large companies.”
The “standard” corporate income tax rate for 2019 had been reduced by the Finance Law for 2018 to 31% for financial years opened as from 1 January 2019, and with the first €500,000 of tax being subject to a 28% rate. Read TaxNewsFlash
As announced in December 2018, the French government proposed to restrict the 31% rate to companies with a turnover not exceeding €250 million. The applicable corporate income tax rate for taxpayers (or tax groups) with revenues over €250 million would be maintained at 33⅓ % for the amount of profits exceeding €500,000.
A “slowdown” for application of the corporate income tax rate reduction would not affect later financial years, and thus, the rates listed below would remain valid:
The 3.3% surtax computed on the standard corporate income tax liability (determined after a deduction of a lump-sum amount of €763,000) also would remain unaffected. Accordingly, the aggregated corporate income tax rates reflecting the surtax would be:
For more information, contact a tax professional with a KPMG member firm in France (KPMG Avocats):
Patrick Seroin | + 33 (0) 1 55 68 48 02 | email@example.com
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