The Finance Bill for 2021 is expected to be subject to discussion and debate by the Parliament during the fall, with enactment anticipated by mid December 2020. In August 2020, services output sped up (+4.1%) but remained below its February level (−7.2%) 30/10/2020. France: Finance Bill for 2021, tax measures announced The French government on 28 September 2020 released a draft of the Finance Bill for 2021 that proposes tax measures. One measure aims at “tax neutralizing” capital gains arising from revaluations of assets; another aims at postponing the taxation of capital gains realized on real estate assets in sale and leaseback transactions. Under the Finance Bill for 2021, such expenses incurred as from 1 January 2022 would no longer be doubled. Globalement, le PIB de 2021 devrait donc se retrouver quelque 6½ points de pourcentage au-dessous du niveau envisagé par les projections établies en janvier 2020, avant la pandémie de COVID-19. In this first state of play, Knight Frank draws upon numerous case studies both in France and... What is the outlook for the French investment market? As a consequence, the company continues to use the real estate asset but no longer owns it. The CET is currently capped at 3% of the added value of the taxpayer; it is proposed that this cap would be reduced to 2% with the expectation that this would “neutralize” the upper limit on the CET (given the proposed decrease of the CVAE and of the property taxes on industrial facilities). A reduction of the rate of the CVAE from the current rate of 1.5% to 0.75%. ���B�� D��H��%�_�;Ce�C{�uJC��|J�\�2ް_)��!�!� �^G2��HOmz(���z�k�O�%Q�S��Gl�p �zc�� ymHm�<6R+Ҟp>���b�H���Q[I���6ͥ��. Value added tax (VAT) measures are also foreseen (including clarification of applicable rules concerning complex transactions, deferral of the effective date of the EU Directive on distance or remote sales of goods, and the creation of a VAT group regime as from 1, The contribution on added value of enterprises (. France : la croissance devrait décevoir, la dette poursuivra son envolée en 2021 et 2022 Malus auto : les barèmes 2021 et 2022 dévoilés Companies engaged in a business in France are subject to CET, which is composed of two different taxes: The amount of the property tax on “built properties” (taxe foncière sur les propriétés bâties) would be reduced for industrial facilities, and there would be partial relief from the CET for all companies. The KPMG logo and name are trademarks of KPMG International. The government expects that companies in industrial and retail sectors would be the main beneficiaries of the proposed tax relief. Read an October 2020 report [PDF 139 KB] prepared by the KPMG member firm in France. © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. {{vm.newUser2}} Besides the expected measures regarding production taxes, there are new proposals in the Finance Bill for 2021 that are intended to support French businesses. Tangible and financial assets can be revaluated under the conditions provided by the French commercial code. For more information, contact a tax professional with KPMG Avocats in France: Marie-Pierre Hôo | + 33 (0) 1 55 68 49 09 | mhoo@kpmgavocats.fr, Patrick Seroin Joly | + 33 (0) 1 55 68 48 02 | pseroinjoly@kpmgavocats.fr. Get all info about the various study options in France and compare the tuition fees and length of study. Qualifying expenditures include inter alia the depreciation of fixed assets allocated to R&D, staff expenses, and outsourced expenses. Only real estate used for commercial and industrial purposes would be eligible for this treatment. Regarding outsourced expenses, the qualifying expenses incurred on R&D activities outsourced to public bodies are doubled (multiplied by two) for the computation of the R&D tax credit of the company that ordered them. By 2026 the Principality will be home to 16,100 millionaires and 1,450 ultra high net worth individuals. Trends and analysis of the office property market, in Paris and Ile-de-France, Knight Frank launches non-UK resident Stamp Duty calculator for overseas buyers, Knight Frank launches The Wealth Report Insight Series this summer, View any properties that contain the word(s) "{0}", Find the best properties throughout France.