Limitation of corporate tax loss carry-forwards (€1m plus 60% of profit; carry-back limited to one year and €1m)
Article 2 of the second amending finance act for 2011 limits the offsetting of carried-forward losses against a year's profit to €1 million plus 60% of the profit above that amount; the portion not offset remains carried forward indefinitely (Article 209 of the General Tax Code). The carry-back of losses is limited to the previous year's profit and to €1 million (Article 220 quinquies). The 60% fraction was lowered to 50% at the end of 2012.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Companies subject to corporate tax with profits above €1 million can no longer fully offset those profits with past losses: 40% of the excess remains taxable. According to the impact assessment cited by the Senate, the yield is €500 million in 2011 and €1.5 billion in 2012.
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
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)