top cx logo
cx logo
Explorearrow down
search icon

More changes to taxe pro reform

Business tax set to be replaced by a new set of local taxation in January, potentially saving companies €12bn

A LAW that aims to save businesses almost €12bn a year in tax is one step closer to being passed after it was completely rewritten in parliament.

The part of the 2010 finance bill that would scrap the taxe professionnelle in the New Year was approved by the Senate’s finance committee yesterday.

It is proposed that the levy will be replaced by a new system of local taxation for businesses, raising money for departmental councils and local communes.

The new tax, called the cotisation locale d’activité, will be calculated based on a combination of property rental values, similar to the way in which residential taxes are currently fixed, and turnover.

Nicolas Sarkozy first announced plans to scrap the taxe professionnelle in February and replace it with a different system.

The move is designed to help businesses struggling in the economic crisis and could save them in the region of €11.7bn next year.

The taxe professionnelle is currently paid by most businesses as a percentage of turnover and capital investments and is a major source of funds for local government.

There are exemptions for farms, the press, family-run artisan businesses and some teaching, artistic, intellectual or sporting activities.

Resident or second-home owner in France?
Benefit from our daily digest of headlines and how-to's to help you make the most of life in France
By joining the newsletter, you agree to our Terms & Conditions and Privacy Policy
See more popular articles
The Connexion Help Guides
featured helpguide
Healthcare in France*
Featured Help Guide
- Understand the French healthcare system, how you access it and how you are reimbursed - Useful if you are new to the French healthcare system or want a more in-depth understanding - Reader question and answer section Aimed at non-French nationals living here, the guide gives an overview of what you are (and are not) covered for. There is also information for second-home owners and regular visitors.
Get news, views and information from France