Creation of the territorial solidarity contribution and the tax on railway companies' profits

Article 65 of the 2011 Finance Act creates two taxes payable by passenger rail companies. The territorial solidarity contribution (Article 302 bis ZC of the General Tax Code) is levied on turnover from non-contracted services, at a rate set by order between 2% and 5%. The tax on railway companies' profits (Article 235 ter ZF) applies to companies whose base for the first tax exceeds €300 million, at a rate set by order between 5% and 20%, capped at €75 million. Due on 1 January each year, they fund a new special allocation account 'National contracted passenger transport services' financing intercity lines. The 2022 Finance Act (Article 36) abolished the territorial solidarity contribution from 1 January 2022 and the tax on railway companies' profits from 1 January 2023.