After having wished to enact a new contribution, in the initial bill, on large companies’ EBITDA, in the end the Government reversed course due to the problems caused by this new measure as it was to be implemented. The question of the tax base of the corporate income tax will likely be discussed in the upcoming "Assises de la Fiscalité" (tax roundtable) announced by the Government.
In order to compensate for the budgetary loss due to the elimination of the contribution on the EBITDA, the legislature decided to race the surtax on the corporate income tax, provided in Article 235 ter ZAA of the FTC, from 5% to 10.7%. It should be remembered that this contribution, enacted by the 2011 Amending Finance Act, is owed by companies with more than 250 million euros in turnover. Initially enacted for the fiscal years ended between December 31, 2011 and December 30, 2013, it was extended until the end of 2015 by the 2013 Finance Act.
This rate increase applies to fiscal years ended as of December 31, 2013. In practice, the effect of this contribution rate increase will be to raise the corporate income tax rate to 38%.