Parliamentarians have the possibility to send written questions to the Government.
It is in this context that one of them questioned the Minister of Economy, Finance and Industrial and Digital Sovereignty about :
- "The difference in major differences between sole proprietorships and companies benefiting from the IP Box regime (article 238 of the General Tax Code). "
- And on what the Government intends to put in place " to improve the IP Box system and remedy the difference in treatment it creates".
The major differences between sole proprietorships and companies benefiting from the IP Box regime
The The preferential regime, provided for in article 238 of the CGI, can be applied to products derived from certain intellectual property rights, a reduced rate of 10%.
She also points out that the preferential rate (10%) applies indiscriminately to companies subject to corporation tax (IS) and to sole proprietorships subject to income tax (IR). This has the effect of significantly reducing the corporate income tax rate from 25 % to 10 % (article 219 I. a. of the CGI), while the reduction in the personal income tax rate for sole proprietorships is almost anecdotal.
She therefore asks the government what it intends to do to improve the IP Box system and remedy the unequal treatment it creates in spite of itself.
The Member of Parliament draws attention to the recommendations of the European Union and to the mechanisms put in place by our European neighbors, such as than "Belgium or Luxembourg, where an abatement on the taxable base is applied, respectively of 85 % and 80 %".
The Question was published in the Official Gazette on December 27, 2022, we expect the answer of the government during 2023.
Source: Question N° 4442 by Mrs Louise Morel - Democrat (MoDem and Independents) - Bas-Rhin