By Carine duchemin, Partner
The Finance Law for 2023 was definitively adopted and then published in the Official Journal on December 31, 2022.
It includes very few new tax measures for both individuals and businesses. Nevertheless, a few novelties caught our attention.
Let's start with the individuals:
First of all, in order to neutralize the effects of inflation on the level of taxation of taxpayers, the income tax schedule, as well as the threshold and limits associated with it, are revalued by 5.4%.
Furthermore, the ceiling of the tax credit for childcare for children under 6 is raised, and goes from €2 to €3.
Finally, while the abolition of the housing tax will be definitively acquired for all in 2023 for the main dwelling, the taxation of vacant housing and second homes is increasing : from this year, the tax rate on vacant premises, applied to the rental value of the vacant property (calculated as for housing tax) will be 17% the 1st tax year and 34% the following years.
Regarding the second home tax, remember that the municipalities to which the tax on vacant housing applies can vote for an increase of 5% to 60% of the housing tax if the housing is used as a second home. Finally, the scope of these taxes is expanding and should in particular make it possible to include tourist municipalities located in "strained" areas of less than 50,000 inhabitants.
Regarding companies:
The legislator slightly increases the corporate tax ceiling at the reduced rate of 15% for SMEs. It should be remembered that, as an exception to the normal corporate tax rate of 25%, companies having achieved a turnover not exceeding 10 million euros during the fiscal year or the tax period, benefit from a reduced rate of 15% on part of their taxable profit.
Since 2002, this rate was applicable to €38 of taxable profit, it will be applicable to 42 500€ taxable profit from 1er January 2023.
Other good news, the CVAE (Contribution on the Added Value of Companies) is abolished over two years : thus the contribution due for 2023 is halved and companies will no longer be liable from 2024. The minimum contribution is also halved, to stand at €63. Note that the relief of €500 provided for small businesses is correspondingly reduced to €250. Finally, the abolition of the CVAE leading correlatively to the abolition of the Territorial Economic Contribution (“CET”), only the Contribution Foncière des Entreprises (“CFE”), based on the rental value of properties liable to property tax, continues.
Carine duchemin
Partner
Within the Tax department, Carine Duchemin works in mergers and acquisitions, in the restructuring of companies and groups. She has an important international activity as adviser to international groups, particularly in the hotel industry. Carine Duchemin also assists companies and their managers with tax audits and litigation.
