Article 22 of the 2016 Finance Act halves, for Corporate Tax purposes, the deductible portion of deferred compensation referred to in Articles L. 225-42-1 and L. 225-90-1 of the French Commercial Code ("golden parachute", non-competition indemnity, supplementary pension benefits including "retraites chapeaux") paid by listed limited companies to their presidents, general managers, managing directors, or members of the board.
The maximum amount deductible is reduced to three times the annual social security limit per beneficiary. As for 2016, the maximum amount allowed as a deduction is now € 115,848 (instead of € 228,040 in 2015).
The new limit applies to fiscal years beginning on or after November 1st, 2015. Therefore companies that close their financial year on December 1st, 2015 still benefit from the old limit.