Tax and contribution exemption for civil service mutual termination payments
The 2020 Finance Act extends to the specific mutual termination payments of the civil service, created by the public service transformation act of 6 August 2019, the income tax exemption that applies to private-sector mutual terminations. The 2020 Social Security Financing Act (article 13) excludes them from the social contribution base up to twice the annual social security ceiling.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Affects civil servants and public-law contract staff leaving the public service by mutual termination from 2020. Tax cost estimated at €21m in 2020, €31m in 2021 and €41m in 2022 according to information provided to the Senate general rapporteur.
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
President of the Republic signature
Publication au Journal officiel
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
Joint committee
DĂ©saccord Ă©ventuel
Debate and vote
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)