Impact of the IP Box on the calculation of the profit-sharing reserve: what changes are in store?

Members of parliament can submit written questions to the government. It was in this context that one of them asked the Minister of the Economy, Finance and Industrial and Digital Sovereignty about the impact of IP Box on the calculation of the special employee profit-sharing reserve..

Today, the "legal" calculation provides for the reserve to be calculated on the basis of net taxable profit, taxable at the "normal" corporate tax rate. However, the IP Box calculation will reduce said profit, by isolating eligible income taxable at 10%.

In its reply to parliamentary question number 6923, published in the Journal Officiel de l'Assemblée Nationale on February 27, 2024, the Minister expressed the Government's willingness to include profits taxed at 10% via the IP Box system in the calculation of the special profit-sharing reserve for companies that calculate employee profit-sharing according to the legal system.

The legislative amendment envisaged by the Minister will be the subject of an "ordinary" law.

We'll be sure to keep you posted!