Monday, September 14, 2020
The French Government has announced proposals to cut taxes on production by EUR20bn (USD23.7bn) in 2021 and 2022.
Tax cuts worth EUR10bn per year will be introduced with effect from January 1, 2021.
Namely, the Government will halve the burden of three local level taxes. These are the company value-added contribution (CVAE) and the businesses property contribution (CFE), which collectively make up the Territorial Economic Contribution (CET), and also the property tax on buildings (TFPB).
Companies whose CET liability is greater than three percent of their added value can apply for CFE tax relief. The package reduces the cap to two percent.
The measures were included in an economic stimulus plan unveiled by the Government on September 3, 2020. They will be included in the Finance Bill for 2021, which is due to be presented to the Council of Ministers by the end of September 2020, before being considered by parliament in early October.