L'article 2 of French Finance Act no. 2009-1673 of December 30, 2009 for 2010 institutes, as of 2010, the contribution économique territoriale (CET), comprising :
- business property tax (CFE), based on the rental value of property subject to property tax ;
- a business value-added tax (BOI-CVAE), based on a fraction of the added value produced by companies with sales in excess of €152,500.
Focus: abolition of the CVAE
Article 55 of the Finance Act for 2023 abolishes the CVAE in two stages (reduction of tax rates by half in 2023 and definitive abolition as of 2024).
The capping rate for the CET based on value added is also lowered over this period. As a result of the abolition of the CVAE, this cap will only apply to the CFE from 2024.
The contribution due for 2023 is reduced by half
The tax rate is set at 0.375 % for companies with pre-tax sales in excess of €50,000,000. (For companies whose sales do not exceed this threshold, the effective tax rate is calculated in accordance with article 1586 ter, II-2 of the CGI).
Abolition of the CVAE as of 2024
On May 3, 2024 (or on May 18, 2024 in case of electronic subscription), companies will have to file the 1330-CVAE return relating to the CVAE due for the year 2023 (and proceed, at the latest on May 3, 2024, to the final liquidation of the CVAE due for 2023).
The rate of capping according to the value added is lowered
- For the CET tax (CVAE+CFE) for 2023 the rate is 1.625%
- For 2024 and subsequent years, the cap rate will be 1.25% and will only apply to the CFE.
