Tuesday, June 18, 2013

France Eyes EUR3bn Cut In Corporate Tax Breaks

www.bethelfinance.com/rm

The report underlines the importance of maintaining certain vital tax shelters, however, including the reduced rate of value-added tax (VAT) accorded to the construction industry, and the newly created competitiveness and employment tax credit (CICE).
Furthermore, the report suggests cutting the amount of taxes allocated to the national cinema center to the tune of around EUR150m and reducing levies flowing to the chamber of commerce and industry by approximately EUR400m. The report also proposes that the tax regime applicable for listed real estate investment companies be revised.
Finally, the report underlines the importance of revising existing tax advantages accorded to French overseas departments and reviewing fuel tax breaks. These include the reduced rate of the domestic tax on the consumption of energy products (TICPE) currently benefiting taxis, farmers, and road hauliers in France. A revision of the Livret de Développement Durable (LDD), the tax-free sustainable development savings account, is also recommended.
Each year, an estimated EUR60bn in fiscal aid (subsidies, tax breaks, loans, investments in own capital) is used to support businesses in France. The Government had tasked the mission back in February with analysing the system, and with identifying EUR2bn in savings, namely EUR1bn in 2014 and a further EUR1bn in 2015. The mission has therefore gone beyond its initial remit.

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