28% corporate tax rate for SMEs and path to lower the standard rate
The 2017 Finance Act gradually lowers the standard corporate tax rate from 33.33% to 28%: in 2017 for SMEs (EU definition) on profits up to €75,000; in 2018 for all companies up to €500,000 of profit; in 2019 on all profits of companies with turnover up to €1bn; in 2020 for all. The turnover ceiling for the reduced 15% rate rises from €7.63m to €50m from 2019.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
In 2017, only SMEs benefit from the 28% rate on profits between €38,120 and €75,000 (or up to €75,000 for those not entitled to the 15% rate). Estimated cost €330m in 2017 and €7bn per year in the long run. The 2018 Finance Act replaced this path with a reduction to 25%.
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
Council of Ministers
Validation interne