Limit on deductibility of companies' net financial charges (15% then 25% add-back)
The 2013 Finance Act requires companies subject to corporate income tax to add back to their taxable profit 15% of their net financial charges, then 25% for financial years starting from 1 January 2014, when these charges reach at least €3m. Certain charges related to public service delegations, concessions and public-private partnerships are excluded.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
The measure concerns companies with net financial charges of at least €3m, i.e. according to the Senate report debt of around €60m. It applied to financial years ending from 31 December 2012. The Constitutional Council upheld it. It was replaced from 2019 by the limitation derived from the EU anti-tax avoidance directive.
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
National Assembly has the final say
Si échec CMP
Joint committee
Désaccord éventuel
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)
Council of Ministers
Validation interne