The French corporate income tax rate has been decreased to 26.5% since January 01, 2021.
No tax increase is forecasted in France despite the COVID-19 sanitary crisis and the historical effort conducted by the French government to sustain the economy during this period. More about investment promotion news HERE.
On the contrary, the Draft Finance Bill decreases the tax burden and uses this as a tool to start-up the recovery of the French economy in the context of the French €100 billion relaunch plan presented to the ministerial council on 3 September 2020. (“Relaunch Plan“).
The French corporate income tax rate will still progressively decrease: to 26.5% in 2021 (except for companies which turnover exceeds €250 million which will bear a 27.5% rate) and to 25% for all companies in 2022.
The Draft Finance Bill goes ahead with the previous steps taken to decrease the corporate income taxation; it implements a new set of measures to reduce taxes on investment; it provides for temporary tax mitigation measures facilitating cash refinancing; it supports the green growth and environmental transition by implementing specific green tax incentives mainly for individuals (not covered in this note); and it simplifies some useless tax formalities.
The French government has embarked on a vast program of pro-business reforms, aimed at generating more solid, inclusive and sustainable growth. This national strategy is based around four themes:
❖ Encouraging investment and employment through a reduction in taxation
❖ Promoting professional mobility and valuing work
❖ Supporting corporate growth and innovation
❖ Transforming the State through administrative simplification.
France’s new economic stimulus plan, “France Relance” or “Relaunch France”, presented on September 3, 2020, supplements this widescale drive for reform in the areas of competitiveness, simplification and stability.
France was the leading destination for international investment in Europe in 2019
In 2019, France was the leading host country for foreign investment in Europe, attracting 19% of all job-creating foreign investments in Europe. France is the third largest economy in Europe, with more than 67 million consumers, and has the highest fertility rate in Europe.
Source/ Image Credit: BUSINESS FRANCE