French Prime Minister Jean Castex confirms a reduction in production taxes
On Wednesday, French Prime Minister Jean Castex has confirmed August 26th a €10 billion reduction in production taxes for next year.
Production taxes: a “punitive” taxation
The Prime Minister has confirmed during the Medef’s Summer School inauguration that the first reduction of production taxes will take place from January 1rst, 2021. This decrease set at €10 billion will touch three different types of production taxes:
- the Company Value-Added Contribution (CVAE)
- the “Cotisation Foncière des Entreprises” (CFE, based on the rateable value of the property occupied by the business)
- the property tax
The tax reduction will include a cut by half of the CVAE due to the deletion of the part allocated to Regions. However, Jean Castex has promised the local collectivities a full compensation.
With this tax reduction, the French government aims to boost competitiveness after the sanitary crisis. While being higher in France than in the rest of Europe, these production taxes represent a quarter of all company taxation. “We cannot make or remake France an industrial nation while maintaining taxation objectively and comparatively punitive for our industry,” said Jean Castex.
Read more: 2019, best year for Nordic and Danish investors in France
Accelerate and strengthen industrial presence
The French Government together with the Regions have launched the “Ready to use industrial sites” to accelerate compulsory
preliminary procedures to an industrial creation in France. These industrial sites offer ecosystems particularly suitable
for industrial activities: talents, possible partnerships with other companies and research and excellence centers.
Ready-to-use industrial sites’ map
These sites are attractive to foreign investors who can thus benefit from a clear list of industrial sites meeting their needs in terms of lead times, services and infrastructure.
Contact us for more information or guidance in your investment project in France