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New aidEndedCorporate taxNational

Tax credit for businesses employing operational military reservists

Article 108 of the 2005 Amending Finance Act creates Article 244 quater N of the General Tax Code. Businesses employing staff committed to the operational military reserve receive a tax credit equal to 25% of the difference between the daily gross salary they keep paying during reserve duties (outside leave and non-working days, when notice is under a month or cumulative absence exceeds five days) and the pay received by the reservist. The salary taken into account is capped at €200 per day per employee, and the credit at €30,000 per business. It applies to expenses incurred from 1 January 2006 to 31 December 2007.

Measure originators

InitiatorGVT
Thierry Breton
Gouvernement
InitiatorGVT
Jean-François Copé
Gouvernement
Impact on public finances

No official estimate found for this measure.

Effective date
1 January 2006

Measure impact

Employers who keep paying reservist employees during reserve periods recover a quarter of the extra cost. The Senate report states that the cost of the tax credit had not been communicated to the committee.

Official references

Law number: Loi n° 2005-1720 du 30 décembre 2005 (LFR 2005), art. 108
Official Journal: JORF n° 304 du 31 décembre 2005
View on Légifrance

Sources

Loi n° 2005-1720 du 30 décembre 2005 de finances rectificative pour 2005Official
31 December 2005
Sénat, rapport n° 129 (2005-2006) de M. Philippe Marini, tome I, examen de l'article 47Parliamentary
14 December 2005
Assemblée nationale, dossier législatif de la loi de finances rectificative pour 2005Parliamentary
22 December 2005

Procedure timeline

Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.

100%
8 / 8 steps
Completed
1 January 2006

Administrative implementation

Application

Entrée en vigueur de la mesure et mise en œuvre par l'administration

Entrée en application des dispositions (art. 108).
Source
Completed
30 December 2005

President of the Republic signature

Promulgation

Publication au Journal officiel

Promulgation de la loi n° 2005-1720 du 30 décembre 2005 (art. 108), publiée au JORF n° 304 du 31 décembre 2005.
Source
Completed
29 December 2005

Possible referral to Constitutional Council

Constitutional review

Décision de conformité / censure partielle

Décision du Conseil constitutionnel n° 2005-531 DC du 29 décembre 2005.
Source
Completed
22 December 2005

National Assembly has the final say

Parliamentary process

Si échec CMP

Vote result
Adopted
Adoption du texte de la commission mixte paritaire.
Source
Completed
21 December 2005

Joint committee

Parliamentary process

Désaccord éventuel

Accord de la commission mixte paritaire (rapporteurs Gilles Carrez et Philippe Marini).
Source
Completed
20 December 2005

Debate and vote

Parliamentary process
Vote result
Adopted
Adoption en première lecture par le Sénat, avec modifications (TA n° 40).
Source
Completed
8 December 2005

Debate and vote

Parliamentary process

Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)

Vote result
Adopted
Adoption en première lecture par l'Assemblée nationale (TA n° 515).
Source
Completed
23 November 2005

Transmission to National Assembly

Parliamentary process
Dépôt à l'Assemblée nationale du projet de loi de finances rectificative pour 2005 (n° 2700) par Thierry Breton et Jean-François Copé.
Source