France: Finance Bill for 2014 officially announced – detailsSeptember 25, 2013
On 11 September 2013, the Prime Minister officially announced the key measures of the Finance Bill for 2014 (projet de loi de finances pour 2014 – PLF).
These measures are summarized below.
The bill will modify:
- The corporate income tax base to take into consideration business operating revenue – earning before interest tax depreciation and amortization (EBITDA) – rather than turnover
- The employer contributions paid by young innovative companies (jeunes entreprises innovantes – JEI)
The bill will:
- Modify the capital gains tax regime on both movable and immovable properties
- Reinstate the inflation or cost of living index to the personal income tax brackets
- Reduce the family coefficient (quotient familial) ceiling
The bill will implement a new reduced VAT rate on social housing of up to 5%.
The bill will implement a new climate energy contribution.
The Finance Bill will be submitted to the Council of Ministers for approval at the end of September and will be subject to parliamentary discussion before the end of 2013.
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