Tuesday, 20 January 2015

French finance laws adopted, including tax measures

The end of the calendar year in France typically is characterized by a flurry of legislative activity, including debates and votes on the finance law for the coming year, amended versions of the current year’s finance law and other related finance laws. 2014 was no different: on 18 December 2014, the parliament adopted the Finance Law for 2015, the Amended Finance Law for 2014 and the Social Security Finance Law for 2015.
The Constitutional Court reviewed several of the provisions of both finance laws and, in its decision issued on 29 December, struck down certain measures and affirmed the constitutionality of others. Measures that were held unconstitutional in whole or in part will not enter into force. One of the measures that did not pass constitutional muster was a provision that would have imposed a fine (5% of the fees paid for tax assistance, but no less than EUR 10,000) on tax advisors that intentionally and knowingly assist a taxpayer in committing an abuse of tax law in cases where the taxpayer would have been penalized separately from the tax advisor for deliberately using the tax law contrary to the objective of the law. The court also struck down a proposed change to France’s participation exemption that would have excluded from the regime dividends paid from profits derived from an activity not subject to the French corporate income tax or an equivalent foreign tax.
Certain corporate tax and transfer pricing measures that were adopted by the parliament and were not struck down by the Constitutional Court, which are of interest to multinational groups, are described below. These measures entered into force on 1 January 2015 and apply as from that date, unless otherwise noted.
Source & more info: Deloitte