Tax decreaseEndedEmployment and contributionsNational

Payroll tax credit (CITS) for associations and non-profit bodies

Employers liable for payroll tax who benefit from the allowance under Article 1679 A of the General Tax Code (associations, trade unions, mutual societies with fewer than thirty employees, recognised public-interest foundations, cancer centres) receive a tax credit equal to 4% of pay up to 2.5 times the minimum wage, less the allowance, offset against payroll tax.

Measure originators

InitiatorSOC

Bruno Le Roux

Socialistes et apparentés

Impact on public finances

Costs 600 m €/yr2018 estimate · State

Source of the estimate: Rapport AN n° 4125 tome III (PLF 2017), examen en commission de l'amendement II-CF 245 (Indirect official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

1 January 2017

Measure impact

Scheme similar to the CICE for the non-profit sector, which does not pay corporate tax. Applies to payroll tax due on pay paid from 1 January 2017. Abolished on 1 January 2019, replaced by the cut in employer contributions.