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Action plan for company investment and growth

The Government has launched Plan Entreprises, whose aim it is to develop our policy with a view to fostering company growth and job creation while simplifying existing systems. The Plan is based on a participative approach and consultation, with setup of theme-based workgroups with stakeholders.
 
WHAT DOES THIS INVOLVE?

Progressive reduction of corporate tax

  • Corporate tax will be reduced to 25% by 2022
  • Maintenance of the 15% reduced tax on the first 38,120 euros of profit for companies with a turnover of less than 7.63 million euros
  • Abolition of the 3% contribution on distributed income for sums payable in 2018

Transformation of the CICE into a reduction of employers’ contributions

  • Lowering the tax credit for competitiveness and employment (CICE - crédit d’impôt pour la compétitivité et l’emploi) from 7 to 6% for wages paid in 2018
  • Abolition of the CICE in 2019
  • 6-point reduction of employers’ contributions for wages lower than 2.5 x the minimum wage (SMIC – salaire minimum interprofessionnel de croissance)
  • 4.1-point reinforced reduction at SMIC level

Establishment of a single flat-rate tax on capital income

  • Single flat rate of 30% on capital income as from 2018
  • Simplification of savings taxation
  • Reduction of maximum tax rates in order to encourage better return on savings
  • Maintenance of tax regimes for popular savings products (Livret A savings accounts, employee savings plans, etc.) so as not to penalise low-income households.

Replacement of the ISF by a real-estate tax

  • Abolition of the solidarity tax on wealth (ISF - impôt sur la fortune) as from 2018
  • Replacement by a real-estate tax (IFI - impôt sur la fortune immobilière) with the same scale as the ISF.

Setup of workgroups

Workgroups, each co-chaired by a business leader and a parliamentarian, focusing on 6 priority themes:
  • creation, growth and transmission,
  • financing companies,
  • simplification and securement of relations between companies and the administration,
  • conquest of international markets,
  • digitisation and innovation,
  • initial training and continuing professional development.

WHY?

Although France possesses a good many advantages favouring company creation and development, it is too often the case that companies experience difficulties in growing, recruiting and exporting. It is necessary to ensure that our policy develops in such a way as to give entrepreneurs and enterprises the desire, framework and levers required to innovate, change, grow and create jobs.
 
This is the aim of the measures announced by the Prime Minister with regard to reforming company taxation, which complement the current reform of labour law and upcoming reform of legislation on apprenticeship and vocational training.
 
ACTION TAKEN
11 September 2017: Prime Minister’s presentation of the Plan Entreprises
October 2017: start of consultations with stakeholders
Spring 2018: bill on company investment and growth
 

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