The Ministry of the Economy and Finances published a summary of the main measures introduced by the Finance Law 2018 and the Social Security Finance Law 2018 regarding corporate taxation on 19 February 2018. These measures generally apply from 1 January 2018.

The new measures include the following changes:

  • the standard rate of corporate income tax will be reduced from 33.3% to 25% by 2022;
  • the rate of the tax credit for competitiveness and employment (CICE) is reduced from 7% to 6%;
  • got rid of the law of tax credit for commercial prospection expenses;
  • the upper band of payroll tax (20% rate for remuneration exceeding EUR 152,279 per year) is abrogated;
  • the tax of financial transactions is not extended to intraday transactions;
  • the rule of 3% tax on dividends is also abolished; and
  • rules regarding interest deduction limitation for low-substance holding companies are brought into line with EU law.