22 September 2016 French Government announces decrease in individual and corporate income tax rates In 2014, the French Government implemented the Pact of Responsibility and Solidarity to reduce public expenditures as well as individual and corporate taxes.To further continue this reduction plan, the French Government on September9, announced that additional measures will be taken to decrease theindividual and corporate income taxes.Finance bill 2017 will launch the fourth consecutive tax reduction on householdincome (corresponding to a €1 billion reduction per year). Corporate income tax(CIT) measures are also envisaged. For instance, the CIT rate would be progressively lowered down to 28% for all companies before 2020, starting with SMEs (small and medium-sized enterprises) and expanding to larger companies as a second step. However, it is important to note that these measures might not be implemented in their current form, given the context of the French presidential elections. Document ID: 2016-1600 |
