The French Constitutional Court declared its judgment on the recently approved temporary surcharge on large companies on the 29 November 2017.
More than sixty Senators and more than sixty MPs criticized the procedure for passing the law. The deputies also invoked a breach of the principle of sincerity of financial laws. But the he Constitutional Council considers that the procedure for adopting the law has been regular, the requirements for prior consultations have been met and the parliamentarians have had the opportunity to table amendments, despite the shortened scrutiny.
The amendment, approved by parliament on November 14, 2017, effectively increases the corporate tax from 33.3 percent to 38.3 percent for companies with turnover in excess of EUR1bn (USD1.2bn) and to 43.3 percent for companies with turnover in excess of EUR3bn.
The temporary surcharge will apply for financial years ending between December 31, 2017, and December 30, 2018.
The surcharge is levied at a rate of 15% for companies with gross revenue exceeding EUR 1 billion, with an additional 15% surcharge for companies with gross revenue exceeding EUR 3 billion.
