Presented to the Council of Ministers on September 28, 2020, the Finance Bill is a traditionally eagerly awaited exercise in Parliament every year-end.
It contains the "budget blueprints", referring to the mandatory appendices presented in the form of blue booklets.
The PLF is the country's draft budget for the coming year, bringing together all estimated government revenue and expenditure in a single document. It proposes the nature, amount and allocation of the State's resources and uses.
Let's discover together the main measures announced in the PLF 2021 for businesses!
Corporate income tax (IS) continues to fall, as the government had promised. By 2021, all companies will be affected.
It will be 26.5% for all companies with annual sales of up to 250 million euros. For all other companies, the rate will be 27.5%. The lowering of the corporate income tax rate to 25% for all companies is confirmed for 2022.
This is another measure particularly eagerly awaited by business leaders: the €10 billion nationwide reduction in production taxes must be part of a trajectory to improve business competitiveness.
In 2021 :
- The amount of the CVAE (Cotisation sur la Valeur Ajoutée des Entreprises) will be halved
- The capping rate for the CET (Contribution Économique Territoriale) is reduced from 3% to 2% so that all eligible companies can benefit from the reduction in the CVAE and CFE.
- The CFE exemption is extended to three years in the case of new or enlarged establishments. This measure may be decided upon by local authorities.
- The accounting valuation method used to determine the amount of property taxes will be re-evaluated to reduce the amount of CFE and TFPB.
This measure concerns all companies subject to income tax (in the industrial and commercial or non-commercial profits category) and subject to the actual taxation system.
All those who do not belong to an approved management organization (OGA) have their taxable profit increased by 25%.
This surcharge will be phased out between 2020 and 2023. The surcharge rate will fall to 20% in 2020, 15% in 2021, 10% in 2022, before being abolished altogether in 2023.
The digitalization of businesses is a government priority. It will therefore allocate an overall envelope of 1.5 billion euros (including 1 billion in payment credits in 2021) to:
- Raising awareness and supporting VSEs and SMEs in their digital transition via France Num
- Create an audit and support system for SMEs and ETIs to increase their digital maturity, create artificial intelligence solutions and modernize their production tools thanks to IA Booster.
- Support digital investments by SMEs and ETIs through subsidies replacing the tax write-off mechanism.
Young people are the main target of the exceptional hiring assistance schemes created in response to the Covid-19 health crisis. For any contract to hire a person under the age of 26 on a permanent or fixed-term contract until January 30, 2021, employers will receive exceptional assistance of up to €4,000. The aim is to support around 580,000 people over this period.
The aid is paid up to a maximum of 2 times the minimum wage.
A budget of €2 billion has been earmarked for work-study contracts (including almost €1.5 billion in payment credits in 2021). It covers contracts signed up to February 28, 2021, and amounts to a maximum of €8,000 per person, depending on the age of the alternant.
You are now ready to effectively anticipate the major economic changes to come in 2021. So don't hesitate to visit your personalized company portal to carry out the appropriate simulations, or contact your advisor for more information!
Written by our expert Paul LASBARRERES-CANDAU
January 11, 2021
