Creation of the competitiveness and employment tax credit (CICE) at a 4% rate for 2013
The December 2012 Amending Finance Act creates the competitiveness and employment tax credit (CICE). It applies to pay up to 2.5 times the minimum wage paid by companies taxed on their actual profits. Its rate is set at 6%, but at 4% for pay paid in 2013. It is set against income tax or corporate income tax; any surplus is refunded after three years, or immediately for SMEs and young companies. It applies to pay paid from 1 January 2013.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
The CICE reduces labour costs through a tax credit rather than a cut in contributions. According to the Senate finance committee report, the Government estimated companies' claims for 2013 at €13 billion, with a budget cost deferred from 2014. The rate rose to 6% in 2014 and the CICE was replaced by a cut in employer contributions in 2019.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
National Assembly has the final say
Si Ă©chec CMP