In principle, the corporate income tax rate applicable in France amounts to 33 1/3%. This rate can be increased by additional surtaxes such as the social surtax of 3.3% if the corporate income tax due by the company exceeds EUR 763,000 or the additional temporary surtax of 5% applicable to companies having a turnover exceeding EUR 250 million.
This exceptional additional 5% surtax has been increased by the Finance Act 2014 from 5% to 10.7% for companies with an annual turnover exceeding EUR 250 million.
This exceptional surtax should only apply in principle over fiscal years 2013 and 2014.
As a result, the effective corporate tax rate could reach 38% for the largest companies if they are subject to the social surtax of 3.3% and to the temporary surtax of 10.7%.
This new rate regarding the temporary surtax applies as from 1 January 2014.