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ARTICLE · 17 SEPTEMBER 2018

French Tax Report September 2018

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Certain rules applicable to medium and small businesses are not covered hereafter.

FranceTax

Below we provide a summary of the current major rules governing the French corporate income tax (CIT) as applied to financial instruments.

NB: Certain rules applicable to medium and small businesses are not covered hereafter.

1. CIT rates

The CIT rates are on the path to be reduced significantly in the coming years.

In 2018 the rate is 33.33 percent, except for the taxable profit up to €500,000 where the rate is 28 percent.

In 2019, the rate will be 31 percent, except for the taxable profit up to €500,000 where the rate will be 28 percent.

In 2020, there will be a unique rate of 28 percent, decreasing to 26.5 percent in 2021 and to 25 percent from 2022.

NB: Businesses with a turnover exceeding €1 billion were liable to one or two exceptional contributions, based on the CIT liability, for the financial year closed from December 31, 2017 to December 30, 2018.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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