Strengthening of the Cice and reduction of the corporate tax in the SMEs
The rate of the tax credit for Competitiveness and Employment (Cice) will increase from 6% to 7% in 2017. Remember that the Cice is calculated per natural year on the gross amount of compensations that do not exceed 2.5 times the minimum wage (CGI art. 244 quater C).
The decrease in corporate tax for SMEs already announced by the Prime Minister would be confirmed. For businesses whose turnover is less than € 50 million, the CIT rate would be lowered to 28% in 2017 on a fraction of the profit set at € 75,000. This would be added to the already applicable to companies whose turnover (CA) is less than € 7.63 million.
According to the fulfilled sales, the CIT rate in 2017 would be set as follows:
– Turnover less than 7.63 M € : 15% up to € 38,120 of earnings, 28% between € 38,120 and € 75,000 of earnings and 33.33% thereafter;
– Sales between 7.63 M€ and 50 M€: 28% up to € 75,000 of earnings and 33.33% thereafter;
– Turnover of over 50 M€ : 33.33%.
The budget law for 2017 should provide for a progressive generalization of the rate of 28% with:
– In 2018, its application to a fraction of the profit set at € 500 000 for all companies,
– In 2019, its application to all of the companies whose turnover is less than € 1 billion,
– In 2020, its application to the entire benefit of all businesses.
Note: The budget law is not expected to return to the abolition of the exceptional contribution of 10.7% due to the years ended on December 30, 2016 to (CGI art 235 ter BIA).