The government proposes extending a temporary surtax on large companies, reintroducing a levy on shipping groups and indexing income tax brackets, as it seeks EUR 43 billion in recovery measures.
France’s National Assembly published the draft Finance Bill for 2027 on 1 October 2026, outlining the government’s plan to lower the public deficit from a revised 5.4% of GDP in 2026 to 5.0% in 2027, subject to parliamentary approval.
The measures would generally apply from 1 January 2027.
Corporate taxation
- The temporary surtax on corporate income tax would run for a further year for companies with turnover of at least EUR 1.5 billion. The rates would be lower, at 15.7% for turnover up to EUR 3 billion and 31.4% above that.
- The exceptional tax on large maritime shipping companies under the tonnage tax regime would return at a reduced rate of 8%. It would apply to companies with annual global turnover of EUR 1 billion or more, for fiscal years closing on or after 31 December 2026.
- A temporary “Industry 4.0” super-depreciation scheme would cover advanced manufacturing, automation and digital assets ordered between 2027 and 2029.
Pillar Two
General-interest social housing activities would be excluded from qualified results under the GloBE rules. Their income is generally exempt and could otherwise push the ETR below 15% for QDMTT purposes.
VAT
Streaming platforms and composite telecom/TV bundles would face the standard VAT rate of 20%.
Tax administration
Authorities would receive permanent powers for automated data collection and web scraping of online platform content. The aim is to detect unreported income and false tax residences.
Personal taxation
The bill indexes the personal income tax brackets for inflation. The general rates are 0% up to EUR 11,844, 11% up to EUR 30,200, 30% up to EUR 86,353, 41% up to EUR 185,737 and 45% above that. The government says indexation shields about 20 million households from an aggregate increase of nearly EUR 4 billion.
The bill also sets a EUR 3,000 sub-cap on the 10% pension deduction.
Deficit and growth outlook
The government has cut its 2026 growth estimate to 0.5% from 1.0%, citing Middle East tensions and summer droughts. The consolidation effort relies on EUR 43 billion in recovery measures across the Finance Bill and the Social Security Finance Bill.
Public spending
State spending under the expenditure norm would remain frozen at EUR 511 billion, with defence receiving an extra EUR 6.4 billion. The bill also proposes a temporary contribution on local government tax revenues, expected to raise EUR 2.5 billion.
The proposals will now go through parliamentary scrutiny before any of the measures can take effect from 1 January 2027.
Earlier, the French government presented the Finance Bill for 2027 to the National Assembly on 1 October 2026 for parliamentary consideration.
