The French Parliament has approved the first Amending Finance Bill for 2017 that was validated by the French constitutional court. The administrative guidelines on temporary surcharge of large companies were released on 8 December 2017.
This Bill approves a new exceptional and temporary (one-time) surtax on corporate income tax will be introduced on very large companies, i.e. companies whose annual turnover exceeds EUR 1 billion so that the French Treasury can offset the significant amount they need to reimburse. According to the first Amending Finance Bill for 2017 two contributions follows depending on the company’s turnover:
• Companies with revenue exceeding €1 billion would be subject to a 15% “exceptional contribution” on CIT due;
• A higher rate of 30% will apply to companies whose turnover equals or exceeds EUR 3 billion,
The maximum effective corporate tax rate, therefore, will be 39.4% and 44.4%, respectively.
