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  • Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 4/10/2014

France - Corporate tax cuts are proposed 

April 10:  New French Prime Minister Manuel Valls announced, during a 9 April 2014 speech to parliament, proposals to reduce or cut the corporate tax burden.

Among the proposals are measures for:


  • Repeal of the 10% corporate income tax surcharge imposed on “large enterprises” (i.e., those with annual turnover exceeding €250 million), to be effective 2016
  • A phased-in reduction of the standard rate of corporate income tax, from 331/3% to 28% (with the phased-in rate reduction not to be completed until 2020)
  • Phase-out of the “turnover tax” known as C3S—Contribution sociale de solidarité des societies over the 2015-2018 period

Another proposal put forth by the prime minister would repeal social security contributions on the “minimum wage” and would reduce the amounts of social security contributions (which would apply only to certain categories of employees).

KPMG observation

Tax professionals with Fidal* have observed that, at present, these proposals for tax reductions or cuts are in the form of a general announcement only. Currently, there is no draft law relating to these tax reductions. If these proposals were to move forward, some of the announced measures would not be expected to be effective before 2018—which is the year following the year for the election of a new president. Accordingly, the fate of these proposals is relatively uncertain.



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


Olivier Ferrari

+33 (0)1 55 68 14 76


Patrick Seroin

+33 (0)1 55 68 15 93


Gilles Galinier-Warrain

+1 212-954-8605


*Fidal is an independent legal entity that is separate from KPMG International and its member firms.




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