It is rumoured that France’s government will keep several measures from the original 2025 Finance Bill with some amendments. Earlier, the French Parliament adopted the Special Finance Bill for 2025 (the Special Bill) on 18 December 2024, after the French government approved the bill on 11 December 2024. However, the original Finance Bill was postponed until a new government was formed in December 2024.
The key change compared to the original bill proposed by the government is the introduction of a temporary surtax on corporate income tax for large companies with an annual turnover of at least EUR 1 billion, which will be applied for two fiscal years ending on or after 31 December 2024.
The revised Finance Bill for 2025 proposes imposing the surtax for just one year from the initially planned two years.
The surtax rates will be 20.6% in the first fiscal year for companies with turnover between EUR 1 billion and EUR 3 billion and 10.3% in the second fiscal year. There will be a “smoothing mechanism” to reduce the surtax for turnover between EUR 1 billion and EUR 1.1 billion.
For companies with turnover above EUR 3 billion, the surtax rate will be 41.2% in the first fiscal year and 20.6% in the second fiscal year. There will be a “smoothing mechanism” to reduce the surtax for turnover between EUR 1 billion and EUR 3.1 billion.
