Creation of a 5% levy on promotional spending by medical device manufacturers and distributors

Article 14 of the 2004 Social Security Financing Act creates Articles L. 245-5-1 to L. 245-5-6 of the Social Security Code. Businesses that manufacture, import or distribute in France medical devices and other products on the list of reimbursable products and services pay the national health insurance fund a 5% levy on their promotional spending (pay of presentation and sales staff, travel costs, publications and advertising space outside approved medical press), after a EUR 100,000 allowance. Businesses with turnover on these products below EUR 7.5 million are exempt, unless they belong to a group above that threshold. The levy, which is not tax-deductible, is paid by 1 December at the latest and applies for the first time to the 2003 base.