To give one, the State will have to take the other. In announcing this Thursday, a decline of $ 5 billion of income tax for the middle classes, Emmanuel Macron, in effect, has warned that the measure would be funded in part by the elimination of some tax loopholes for businesses. The folder arrived this Friday in the hands of Bruno Le Maire, minister of finance, who announced that he would get to Bercy as early as next week representatives of employers ‘ organisations, the Medef, the CPME, craftsmen and independent professions to discuss. In the aftermath, the Medef, deemed it “totally unacceptable” the decision of Emmanuel Macron, stressing that “the funding of this decrease by a removal of tax credits, tax loopholes, editor’s note) of the companies […] comes to increase the taxes at the time where the French companies are aware of the rate of compulsory levies, the highest of the OECD countries”.
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And it is true that in order to compensate partially the level of taxation and the amount of charges on enterprises, the use of niches, or “tax expenditures” was particularly inflated in recent years. In a report on the finance bill 2019, the senator Albéric de Montgolfier (LR) stated that, companies and individuals, the niches represent 35.2% of the tax revenue, and € 100 billion.
the Evolution of tax expenditures from 2015 to 2019, in billion euros and as a percentage of revenue net tax. General report no. 147 (2018-2019) Mr Albéric de MONTGOLFIER, on behalf of the finance committee
The government, in the finance act 2019, has even created four new tax loopholes, including one estimated at nearly a billion euros: reduced rate on gas oil purchased by the farmers. And thirteen other niches have increased. Bercy still tried to do a little cleaning at the same time, eliminating or reducing 18 other devices.
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What are the niches that are specific to the enterprises the government could question? Le Figaro list the principal developments tax benefit to businesses. Attention, the Tax Credit for Competitiveness and Employment (CICE) is not listed as being fought over, it is now considered as a reduction of expenses.
• The Research Tax Credit
With 6.2 billion euros, according to the Court of auditors, it is the niche the most important concerning the companies. It is especially popular and, as such, the Medef has already announced that it would fight for its retention, stating that it was “vital for the economy of the country”. It allows you to exempt an amount of 30% of expenditures (up to 100 million euros and 5% beyond) for research, innovation and, more widely, the investment. This can affect the costs of making new collections for the industries of textile, as well as the expenses of young doctors, the spending of technology watch, etc
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If it exceeds the amount of the tax due by the company for at least three years, the tax credit is paid by the State. For new businesses, those in hardship or to SMES, it may even be refunded immediately.
• The different VAT rates
The development of VAT rates may or may not be regarded as tax shelters, according to the definitions proposed by the finance ministry. The association Fipeco.fr François Ecalle, a specialist in public finances, questions “on the reasons for the application of the reduced VAT rate of 10% in the canteens or at the campsites is a tax expenditure so that the application of the 10% rate for works of art and antiques or the rate of 5,5% for books and entrance fees in the cinema are not”.
with respect to the VAT rate, the more advantageous include the rate of 10% applicable to the restoration, officially “to sales for consumption on the premises (with the exception of sales of alcoholic beverages)”, which represents a shortfall of 2.9 billion euros for the State. Other reduction costly, the rate of 2.10 % applicable to the “drug-refundable or subject to a temporary authorization of use and blood products”, which represents 2.34 billion euros of public effort. Finally, the rate to 5.5%, could be challenged by Bercy, in some sectors. It covers a broad range of activities. In the construction, renovation, social housing and the accommodation of the disabled, it is a $ 2.45 billion euros.
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There is also a special regime of VAT for Guadeloupe, Martinique and Réunion (8.5% for the normal rate, and 2.1 % for the reduced rate) and a tax credit, “Corsica” (a deduction of 20% to 30% of business investment made on the island), but these local benefits should not be challenged, because they are part of territorial equality.
• The tax credit incentive
This reduction relates to the incentive awards made by companies with less than 50 employees. This device allows you to subtract from the tax 30% of the effort that are SMES in the areas of incentive compensation beyond the agreements.
• The tax credit for “family”
companies can get a tax reduction when they spend on services, crèche, day nursery or services to the person for the benefit of their employees.
• tax Credit for the formation of the head of the company
This credit allows for the deduction of expenses of continuing vocational training of the business leaders (managers, presidents, individual entrepreneurs…). Concretely, it is to be subtracted from the tax the amount of the hourly minimum wage multiplied by the number of hours spent in training (capped at 40 hours per company per year).
• * * many other plans in favour:
– the regime for young innovative companies, exemption of companies located in the ZFU or ZRR,
– the tax credit or video games cinema,
– the tax credit for the takeover of a company by its employees,
– the apprenticeship tax credit,
– the tax credit for commercial prospecting,
– the cresaid tax for the occupations of item
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