The Economy minister Michel Sapin, November 8, 2016 in Brussels ( AFP / EMMANUEL DUNAND )
“The principle is to treat it the same way the companies under foreign law and under French law since it is this topic that had been put forward by the Constitutional Council,” said the minister in an interview to les Echos dated Monday.
“We’re going to extend this tax exemption to French subsidiaries of foreign groups, for a cost of 300 million euros, offset by a measure of cash weighing on large companies,” he continued.
This measure of liquidity is “a down payment on the C3S” (social contribution of solidarity of companies) said Mr Sapin, who said he wanted “neutrality” of the selected solution “to the budget of the State as well as for the companies”.
Introduced in 2012, the tax on dividends is based on an additional contribution to corporate income tax, carried out in respect of the amounts distributed to the partners or shareholders”. It corresponds to 3% of the amounts distributed.
Only subsidiaries of parent companies foreign subject, the “companies consolidated for tax purposes” – that is to say, where the parent company pays the tax for the companies of the whole group – with their share of the exemption.
Entered by the State Council a priority issue of constitutionality (QPC), the constitutional Council ruled at the end of September that this device created a rupture of equality and was thus “contrary to the Constitution”, giving France until the 1st of January to adapt the law.
The new device selected by Bercy will be included in the finance bill amending, expected in a few days by the council of ministers.
The collective budget will include also the creation of an “account SME innovation”, aimed at the “business angels”, says Mr Tree.
“Its purpose will be to ensure that an entrepreneur who sold his company to reinvest the proceeds of its disposal”, he said.
Copyright © 2016 AFP. All rights of reproduction and representation reserved.
All information contained in this section (dispatches, photographs, logos) are protected by intellectual property rights held by AFP. Therefore, none of the information may not be reproduced, modified, transmitted, redistributed, translated, sold, commercially exploited or used in any manner whatsoever without the prior written agreement of AFP. the AFP will not be held responsible for any delays, errors, omissions, which may not be excluded, nor the consequences of the actions or transactions made on the basis of this information.