Global

Details

  • 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.

Background

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.




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now