Building
23 September 2015

The CICE gains momentum

As at 31 July, more than 520,000 companies subject to corporation tax had claimed the competitiveness and employment tax credit (CICE). SMEs in all sectors, and notably in agriculture, accommodation-catering and services, benefit in particular from this measure. The tax credit also benefits all regions, and first and foremost those located in the provinces. According to INSEE (French National Institute for Statistics and Economic Studies), three out of four companies claim that the CICE will impact their level of employment and/or investment.
Content published under the Government Valls II from 2014 26th August to 2016 11th February
 
The CICE monitoring committee recently published its 2015 report. Created under the amending finance law of 29 December 2012, the CICE has been in force since January 2013. This tax benefit applies to businesses with employees, subject to the actual taxation system, whatever their form and the taxation system applicable to their results (income tax or corporation tax).
 
The CICE works:
  • It is set to reach €18.2 bn in 2014, compared to €11.2 bn in 2013.
  • More than 520,000 companies subject to corporation tax had claimed it as at 31 July, compared to approximately 407,000 at the same date last year, i.e. a 21% increase in the number of declarants. Companies are well-informed of the accounting implications of the scheme.
 
The CICE primarily benefits SMEs: in 2014, 43% concerned micro-companies and SMEs, 66% when medium-sized companies are included, compared to 34% for large companies.
 
It benefits businesses in all sectors, and first and foremost sectors such as agriculture, accommodation and catering and services.
 
It also benefits all regions, and first and foremost those located in the provinces: Creuse and Vendée are the French departments with the highest levels of eligibility for the CICE.
 
Moreover, according to INSEE, three out of four companies claim that the CICE will impact their level of employment and/or investment. 54% of service companies and 35% of industrial companies estimated that the CICE will have had an impact on their level of employment in July 2015.


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