On 31 December 2021, Government Officially published Finance Law for the year 2022. On 22 September 2021, the Minister of Economy, Finance and Recovery, Bruno Le Maire and the Minister Delegate in charge of Public Accounts, Olivier Dussopt, presented the 2022 Finance Bill to the National Assembly. Some of the changes of this Act apply from 1 January 2022 are given below :

Withholding tax

According to the Act, withholding taxes payments for certain services under Article 182 B of the tax code will be applied to non-resident companies after a flat 10% deduction, provided that the non-resident is in an EU or EEA member state.

Personal income tax

The income brackets of the 2021 income tax scale will be indexed to the 2021 inflation forecast, i.e. 1.4%. The default withholding tax rate grids for 2022 will be aligned with this scale. The indexation of individual income tax brackets for inflation, including the following general brackets/rates:
• up to EUR 10,225 – 0%
• over EUR 10,225 up to 26,070 – 11%
• over EUR 26,070 up to 74,545 – 30%
• over EUR 74,545 up to 160,336 – 41%
• over EUR 160,336 – 45%

Tax credit for personal services

This article restores the tax credit canceled in particular for services rendered outside, when they are included in a set of services including home activities.

VAT

Measures to simplify VAT rules and comply with EU VAT law, including the VAT exemption on imports and supplies to EU bodies for COVID-19, certain aspects of the EU e-commerce rules, and changes in the VAT option to tax rules for the financial sector, allowing the option to be applied by operation rather than globally on all operations.

Corporate income tax

Among other changes, the corporate tax rate will be reduced to 25% for all companies from 1 January 2022, as scheduled in the 2018 Finance Law.