The French prime minister last week presented to the French National Assembly the first tax measures expected to be implemented in the very near future. These measures would (in all likelihood) be included in the draft Finance Law for 2018, to be submitted to the French Parliament during the fall 2017. Many of the proposals would aim at increasing the competitiveness of the French marketplace.
Among the proposals are measures that would:
One other contemplated reform would be to transform the current CICE regime (a tax credit granted to employers on salaries paid up to a certain level) into a permanent reduction of social charges. It is not currently clear whether this change would be implemented in 2018 or in 2019 (its implementation would result during the year when it becomes applicable in a double public spending, one resulting from the use or reimbursement of the tax credit and the other from a reduction of the proceeds of the social bodies, thus increasing the public deficit which the French state has committed, in application of EU regulations, to limit to 3%).
For more information, contact a tax professional with Fidal* in France or with KPMG’s International Tax Team in the United States:
Gilles Galinier-Warrain | +33 1 55 68 16 54 | email@example.com
Olivier Ferrari | +33 1 55 68 18 14 | firstname.lastname@example.org
Laurent Leclercq | +33 1 55 68 16 42 | email@example.com
Bruno Bacrot | +33 1 46 24 30 30 | firstname.lastname@example.org
Patrick Seroin | +1 (212) 954-2523 | email@example.com
* Fidal is a French law firm that is independent from KPMG and its member firms.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.