France Confirms Tax Cuts
The French Finance Ministry has presented a supplementary finance bill to the Council of Ministers, which provides for income tax relief worth over EUR1bn (USD1.4bn) for low-paid earners, a one-year extension to the corporate tax surtax, and commits to lower the corporate income tax rate starting in 2017, to reach 28 percent by 2020.
Article one of the bill provides for an exceptional reduction in income tax for low-income households, equal to a EUR350 cut in income tax for near-minimum wage earners.
Meanwhile, article five of the draft legislation proposes to abolish the exceptional contribution on corporate tax in 2016, rather than in 2015 as had originally been planned. The surtax is currently imposed at a rate of 10.7 percent on companies realizing an annual turnover in excess of EUR250m, and applies to tax years from December 31, 2011.
The supplementary finance bill (PLFR) has been presented to the Council of Ministers.
The supplementary social security finance bill for 2014 (PLFRSS) will be presented to the Council of Ministers on June 18. The PLFRSS will implement a second wave of measures contained in the competitiveness pact, including labor cost cuts for businesses and a reduction in the corporate social solidarity contribution (C3S).
Source: taxnews
