[France] Government to reduce exceptional tax on large firms

In France, Prime Minister Sebastien Lecornu has assured that there will be stability for businesses in the nation's upcoming 2027 Budget, including reducing the exceptional tax on large firms, Vital Law reports.

In a public letter to French businesses, the Prime Minister wrote, "We are preparing the 2027 Budget in a much more difficult economic environment than just a few months ago. The war in the Middle East and the situation in the Strait of Hormuz are putting pressure on energy prices. 

“This summer's exceptional drought has hit our agricultural sector hard and is forcing the nation to commit new resources. These are expenses we did not choose, but we must bear them. At the same time, we must take another step of allocating EUR6bn for our national defence. And we must do so while economic growth remains fragile."

He added, "My conviction therefore is simple: you cannot sustainably restore a country's finances by breaking its economic engine."

"That is why the 2027 Budget will be based first and foremost on fiscal stability; there will be no new taxes."

Mr Lecornu also reportedly stated that, although the Government may review tax or social security expenditures and loopholes, it intends to provide relief to support businesses. This includes reducing the exceptional corporate tax contribution levied on very large companies.

Under the 2026 Finance Bill, the exceptional tax on the profits of large companies (CEBGE) was amended and extended by one year.

During its first year, the levy applied to consolidated groups or standalone companies with turnover of at least €1billion, under the one-year extension. In the second year, it applies to taxpayers with turnover exceeding €1.5bn for the second financial year ending on or after December 31, 2025.

For this second year, the rate is reportedly 20.6 per cent of the corporate income tax due for groups with a turnover below €3bn, and 41.2 per cent for turnover exceeding this threshold.

The rate is levied on the average corporate income tax liability for the current and previous fiscal year, after the deduction of losses and long-term capital losses carried forward and the application of exemptions or allowances provided for by special regimes.

To prevent cliff-edges, specific rules apply to reduce the burden for companies whose turnover only marginally exceeds one of the two thresholds.

Source: Vital Law

(Quotes via original reporting)

In France, Prime Minister Sebastien Lecornu has assured that there will be stability for businesses in the nation's upcoming 2027 Budget, including reducing the exceptional tax on large firms, Vital Law reports.

In a public letter to French businesses, the Prime Minister wrote, "We are preparing the 2027 Budget in a much more difficult economic environment than just a few months ago. The war in the Middle East and the situation in the Strait of Hormuz are putting pressure on energy prices. 

“This summer's exceptional drought has hit our agricultural sector hard and is forcing the nation to commit new resources. These are expenses we did not choose, but we must bear them. At the same time, we must take another step of allocating EUR6bn for our national defence. And we must do so while economic growth remains fragile."

He added, "My conviction therefore is simple: you cannot sustainably restore a country's finances by breaking its economic engine."

"That is why the 2027 Budget will be based first and foremost on fiscal stability; there will be no new taxes."

Mr Lecornu also reportedly stated that, although the Government may review tax or social security expenditures and loopholes, it intends to provide relief to support businesses. This includes reducing the exceptional corporate tax contribution levied on very large companies.

Under the 2026 Finance Bill, the exceptional tax on the profits of large companies (CEBGE) was amended and extended by one year.

During its first year, the levy applied to consolidated groups or standalone companies with turnover of at least €1billion, under the one-year extension. In the second year, it applies to taxpayers with turnover exceeding €1.5bn for the second financial year ending on or after December 31, 2025.

For this second year, the rate is reportedly 20.6 per cent of the corporate income tax due for groups with a turnover below €3bn, and 41.2 per cent for turnover exceeding this threshold.

The rate is levied on the average corporate income tax liability for the current and previous fiscal year, after the deduction of losses and long-term capital losses carried forward and the application of exemptions or allowances provided for by special regimes.

To prevent cliff-edges, specific rules apply to reduce the burden for companies whose turnover only marginally exceeds one of the two thresholds.

Source: Vital Law

(Quotes via original reporting)