Global

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  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/22/2012

France - Review of corporate income tax reforms 

January 3: France’s Conseil Constitutionnel on 29 December 2012 approved the Finance Bill for 2013 and the Third Amended Finance Bill for 2012. A few provisions were rejected by the Conseil—specifically concerning individual taxation, the provision relating to the exceptional contribution on income exceeding €1 million per person. The two laws were published 30 December 2012.


December 22:   A package of legislation in France—in English, the bills are known as the French Finance Bill for 2013, the Third Amended Finance Bill for 2012, and the Finance Bill for the Financing of Social Security for 2013—has been approved by the French Parliament.

The legislation has been sent to the French Constitutional Court for its review and approval, and will be enacted following such approval.


The legislation includes provisions affecting corporate taxation in France, concerning:


  • A general limitation of the deductibility of interest expenses
  • A reduction in the tax loss carryforward regime
  • A change to the capital gains on participation regime
  • Rules on the transfer abroad of the registered office of a French company
  • A new tax credit for competitiveness and employment
  • Modification of the value added tax (VAT) rates
  • Computation of the last advance payment for corporate tax
  • Modification of the R&D tax credit
  • Other provisions concerning the payroll tax, an exit tax on capitalization reserves of insurance companies, and tax audits of computerized accounting systems

Read a December 2012 report [PDF 310 KB] prepared by STC Partners in France*: Major French Corporate Income Tax Reforms


*STC Partners is a French law sublicensee of KPMG International in tax.




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