The proposed tax changes contained in the legislation are expecting to execute the package of Finance Bill 2014 of France.
According to the proposed legislation pending before the French Parliament the surcharge on corporate income tax would be increased for large taxpayers and there would be new limit for deduction of interest on related parties’ loans. Also a surcharge would be imposed on companies which pay salary to an employee of an amount over €1 million. The planned reduction of the VAT rate would be repealed. The small and medium size enterprises’ ability to claim “temporarily” the tax losses of foreign branches or subsidiaries would be modified and the taxation capital gains of individual income achieved from the sale of shareholdings would be amended.
