CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Tax Cuts Announced In France's 2018 Budget

Tax Cuts Announced In France's 2018 Budget

by Ulrika Lomas, Tax-News.com, Brussels

28 September 2017


The French Government has confirmed in the 2018 Budget that taxes and compulsory levies will be reduced by around EUR10bn (USD11.8bn) next year.

The budget, released in draft form on September 27, includes reductions in corporate tax, changes to social security contributions, and a tax cut for certain finance sector workers, as well as increases in environmental taxes and the elimination of the housing tax.

The 2018 budget continues to the previous Government's plan to reduce corporate tax to 28 percent on income up to EUR500,000. The headline rate, currently 33.33 percent, will then be lowered to 31 percent in 2019 on profits in excess of EUR500,000 (and the 28 percent lower rate maintained).

Corporate profits will then be taxed at a single rate of 28 percent from 2020, before corporate tax is cut to 26.5 percent in 2021 and to 25 percent in 2022.

Employee unemployment and health contributions will be axed in two stages next year, beginning in January. These contribution rates are currently set at 0.75 percent and 2.4 percent, respectively. However, this measure will be offset by a 1.7 percent increase in the general social contribution (CSG). Currently, the CSG is 7.5 percent of an employee's wages.

These measures are expected to result in social contribution savings for around 21 million employees totaling EUR7bn.

In a bid to encourage high-income workers in the finance industry to relocate from London to Paris amid Brexit uncertainty, the Budget also includes measures to reduce tax on salaries exceeding EUR152,279.

Other changes include a gradual phasing out of the housing tax, an increase to both the tax on diesel and the carbon tax on fuel, and the introduction of a 30 percent flat tax in capital income.

TAGS: tax | financial services | employees | budget | corporation tax | unemployment | carbon tax | social security | France | services | Other

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »