France’s medium-term economic plan, included in the 2014-2017 Stability Program, involves measures that will help France to reach its public deficit target of 3 percent of gross domestic product (GDP) in 2015. Among the tax measures in the plan is to remove by 2016 the obligation for employers to pay social security contributions for minimum wage workers, with the exception of unemployment insurance contributions. The contributions in respect of family allowances would also be reduced for lower paid workers.
The corporate social solidarity contribution is to be lowered from 2015 and abolished by 2017. Also the exceptional contribution currently levied on corporate tax, which is payable by large companies, will be abolished by 2016, and the nominal rate of corporation tax will be reduced gradually from 2017 to reach 28 percent by 2020.
