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AGN EMEA Tax Committee News.
Following the publication of the Finance Act 2024 in France, the four main points you should know include:
- Minimum taxation in France
- Phasing out CVAE (Company Value Added Contribution)
- Electronic invoice
- Green tax credit
1. Minimum taxation in France
Implementation of Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union.
This new tax (different from corporate tax) will be implemented in 2024 and will apply to multinational companies with a turnover of over €750 million, ensuring they pay at least 15% in taxes.
2. Phasing out CVAE (Company Value Added Contribution)
CVAE is a tax based on a company’s added value, and it was supposed to be eliminated by 2024.
However, the plan has been revised, and now the tax will gradually phase out by 2027 instead.
| Year | Tax rate |
|---|---|
| 2024 | 0.24 % |
| 2025 | 0.19 % |
| 2026 | 0.9 % |
| 2027 | 0 % |
3. Electronic invoice
In September 2021, a significant reform regarding e-invoicing and e-reporting was decided upon. This reform is expected to bring about substantial modifications to IT systems.
Initially planned for implementation by July 1st, 2024, the reform faced another postponement in 2023. The new implementation timeline has now been outlined in the Finance Act 2024.
Starting from September 1st, 2026 (with a possibility of being deferred by one quarter), larger companies will be required to issue e-invoices exclusively and report all transactions and payments. These obligatory regulations will gradually extend to encompass all companies by September 1st, 2027.
It’s worth noting that e-invoicing is already mandatory in France for companies invoicing the public sector, facilitated through a platform known as Chorus.
4. Green tax credit
A new green tax credit has been created to generate investments in factories in the field of green industry (batteries, solar panels, wind turbines, heat pumps, etc.). It applies to previously agreed projects.
Brought to you by the AGN EMEA Tax Committee
If you have any questions regarding tax issues in France, please get in touch with Fabrice Vidal.
Fabrice Vidal
Certified public accountant / Legal auditor / Certified expert in business valuation (CCEF)
Caderas Martin