France: Corporate Tax Changes
France has adopted a list of tax measures to stimulate business and job growth.
The country has set its corporate income tax rate to progressively decrease over the course of five years, to arrive at a flat 25 percent rate in 2022. In addition, the widely criticized 3 percent dividend distribution surtax has been abolished. Anti-abuse legislation — known as the “Carrez” rule — that limited interest expense deductibility has also been eliminated.
Finally, companies that conduct groundbreaking research in France will now be rewarded with a 30 percent R&D tax credit, along with additional exemptions.