New apprenticeship development contribution for the regions

Article 37 of the 2005 Finance Act creates Article 1599 quinquies A of the General Tax Code: an apprenticeship development contribution, on top of the apprenticeship tax, is due from apprenticeship tax payers on the same base. Its rate is 0.06% of wages paid in 2004, 0.12% of those paid in 2005 and 0.18% from 2006, with no offsetting expenditure allowed. It is paid to collecting bodies before 1 March of the following year and its proceeds go to the regional apprenticeship and continuing training funds. In return, the decentralisation grant paid to the regions for vocational training is reduced by €197.92 million in 2005, €395.84 million in 2006 and €593.76 million from 2007. The article also creates the National Fund for the Development and Modernisation of Apprenticeship. The contribution was merged with the apprenticeship tax in 2014.