Dividend tax: the exceptional contribution on companies adopted
The Finance Committee of the National Assembly adopted on Friday the draft surtax on corporation tax (IS) which will be used to finance part of the reimbursement and costs of litigation, for a total amount of ten billion. euros, linked to the invalidation of the dividend tax.
With an expected return of 5.4 billion euros, this “exceptional contribution” will have to be paid in the form of a corporate tax on account by large companies before the end of the year to allow the government to meet its commitment to ” a public deficit below 3% of GDP as of December 31.
>> To reread: How this lawyer made the State lose 10 billion euros with the dividend tax
To meet these deadlines, the executive has chosen to go through an amending finance bill (PLFR) limited to this single measure and independent of the traditional end-of-year budget collective, which will be presented to it in mid-November. It provides that the profit tax rate will drop from 33.3% to 38.3% for companies with turnover exceeding one billion euros, and to 43.3% for those with invoices exceeding three billion.
A total of 320 companies are concerned, including 110 for the rate of 43.3%. The Minister of the Economy and Finance, Bruno Le Maire, acknowledged Thursday before the Finance Committee of the Assembly that a majority of these companies, 223, would be losers in this device, which is highly criticized by the employers, their contribution being greater than the reimbursements due to them. The government, which has decided to settle the file of the tax on dividends over two years, to the tune of five billion euros in 2017 and the same in 2018 – stressed that this surcharge would allow it to confirm its deficit forecast public at 2.9% this year.
But he raised by 0.2 point that of the 2018 deficit, to 2.8%, because the State will this time be four billion euros out of his pocket. This amending finance bill will be examined in session Monday at the National Assembly.
Taxation Corporate tax