Question 5655 — corporate tax

Summary

Mr. Jean François Mbaye questions the Minister, to the Minister for Europe and Foreign Affairs, responsible for European affairs, about Eurostat and the consideration of the cancellation of the tax on corporate dividends. On October 3, 2017, the Constitutional Council invalidated the 3% tax on dividends introduced in 2012. This measure, implemented under François Hollande, was intended to compensate for a loss of revenue. budgetary measures and encourage companies to reinvest their profits. The Government was forced to reimburse up to 10 billion euros to the companies concerned. If the State had already provisioned 5.7 billion euros for the year 2018, the Government had to find a solution to raise the additional 5 billion for the year 2017. On November 2, 2017, the executive decided by establishing a tax surcharge on companies with a turnover of more than one billion euros. Around 320 companies, with a turnover of 1 to 3 billion euros, will be subject to a surcharge on their corporate tax (IS) of 38.33%. For 110 companies raking in more than 3 billion in turnover, this will be 43.44%. Through this measure, the Government estimates that the 5 billion collected will make it possible to maintain the deficit at 2.9% of GDP in 2017. The State will have to cover the remaining 5 billion in 2018. The budgetary trajectory will therefore be affected: the deficit forecast for 2018 “will increase from 2.6% to 2.8%”, indicated Bruno Le Maire during a hearing before the finance committee at the National Assembly. The minister also declared that he had found himself in an impasse: “It was that or get out of European corners”. To this day, it remains nevertheless some uncertainties, particularly with regard to Eurostat and the non-payment of tax on dividends. The Minister responsible for European Affairs, Nathalie Loiseau, spoke out on December 3, 2017 in favor of partially taking into account the invalidation of the dividend tax in the calculation in Brussels of the public deficit in 2017, in which case the threshold of 3% would be exceeded. The distribution of the bill of 10 billion between 2017 and 2018 must be formally confirmed by INSEE in conjunction with Eurostat (the statistical office of the European Union). He therefore asks what is happening with the negotiations undertaken by the Government with the European statistical agency concerning the taking into account of the cancellation of this tax on company dividends.

Machine translation from French. The official text remains authoritative.

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