FRANCE is going for implementation of the Government's new tax
credit for competitiveness and employment (CICE) which amounts to a reduction in
social contributions for corporations, and aims to give companies the means with
which to improve their competitiveness and to support employment.
CICE
is emblematic of the Government's national pact for growth, competitiveness and
employment, which was included in the 2012 supplementary finance law and entered
into force on January 1, 2013, allowing 1.5 million companies in France to
benefit from a tax credit of EUR13bn (USD17.3bn) from 2013 and EUR20bn from
2014.
The
CICE tax credit amounts to 4% of gross payroll for remuneration equal to or
below 2.5 times the minimum wage in 2013, rising to 6% in 2014. For any small
and medium business in France having desire to benefit from the funds in 2013, a
pre-financing mechanism will be put in place following publication of the fiscal
instruction.
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