New French Finance Law Published


By Global Tax Weekly

On December 30, the French Government published the 2021 Finance Law in the Official Journal.

This included numerous recently announced corporate tax reliefs, including increasing the annual turnover threshold for small companies to qualify for the 15 percent concessionary rate of corporate tax to EUR10m, from EUR7.63m, with effect from January 1, 2021.

In addition, new Article 2b set new withholding tax bands and rates for non-resident individuals’ employment income for 2021, as follows:

  • income up to EUR15,018, zero percent;
  • income thereafter up to EUR43,563, 12 percent (or eight percent for recipients situated in overseas French departments); and
  • income above EUR43,563, 20 percent (or 14.4 percent for recipients in overseas French departments).

Additional measures included reducing the burden of three local level taxes, and proposals to introduce a VAT group regime, enabling groups of companies to be represented by a single entity for VAT purposes and disregard (for VAT purposes) transactions between members.


For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look





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