Neutralisation of hybrid mismatches (transposition of the ATAD 2 directive)
The 2020 Finance Act transposes Directive (EU) 2017/952 (ATAD 2) by creating articles 205 B, 205 C and 205 D of the General Tax Code. These rules neutralise tax mismatches arising from hybrid arrangements between countries that allow a double deduction of the same expense or a deduction without corresponding taxation. They apply to financial years starting on or after 1 January 2020, except article 205 C (reverse hybrid mismatches), which applies from 2022.
Measure originators
European origin
EUDirective modifiant la directive (UE) 2016/1164 (ATAD 1) en ce qui concerne les dispositifs hybrides faisant intervenir des pays tiers.
No official estimate found for this measure.
Measure impact
Affects companies subject to corporate tax that belong to international groups: certain expenses linked to hybrid arrangements are no longer deductible. The Government did not cost the budgetary impact.
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
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
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)