• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 10/7/2013

France - Surtax to replace tax on gross operating income? 

October 7: The French Minister for Economic Affairs has announced that the proposed tax on gross operating income (as included in the draft Finance Bill for 2014 (September 2013)) would be eventually replaced by an additional surtax on corporate income.

The rate and effective date of the proposed new additional corporate income surtax are yet to be determined.


The draft Finance Bill for 2014 includes a proposal for for a new tax on gross operating income. Read TaxNewsFlash-Europe: Proposal for new tax on gross operating income

KPMG observation

The tax on gross operating income (proposed in the draft Finance Bill for 2014) is viewed as being unfavorable for business investments.

The recently announced temporary surtax would add to the current additional surtax liability imposed on corporate income—with the largest companies being subject currently to surtaxes of the 3.3% social contribution that applies to companies with a corporate income tax exceeding €763,000 and the 5% exceptional contribution that applies to companies with a turnover exceeding €250 million.

For more information, contact a tax professional with KPMG’s French Center in New York or with Fidal Direction Internationale* in Paris:

Gilles Galinier-Warrain, French Tax Center, KPMG LLP, New York

+1 212-954-8605

Olivier Ferrari, Tax Partner

+33 (0)1 55 68 14 76

Patrick Seroin, Tax Partner

+33 (0)1 55 68 15 93

* Fidal Direction Internationale is a French law firm that is independent from KPMG and its member firms.

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