François Hollande announces further tax cuts for corporates in France
The French President, François Hollande, unveiled a “responsibility pact” of €30bn cuts in social charges for firms during his press conference at the Elysee Palace on the 14th of January. This move is aimed at reducing labor costs in order to further restore France’s competitiveness. The cuts amount to 5.4 per cent of average total wage bills for employers.
The pact will be financed by a decrease in public spending. The counterpart for firms is to create more jobs. Concrete implementation will be negotiated with employer federations and trade unions in the upcoming months.
This pact follows a series of reforms led by the French Government to strengthen France’s attractiveness, such as a first €20bn tax break for corporates (CICE), measures to add flexibility to the labor market, incentives to develop innovation clusters (research tax credit), the reduction of the administrative burden for corporates (especially for major international investment projects).
For further information, see the President’s speech at the press conference (in English) : http://www.elysee.fr/declarations/article/introduction-to-the-presidential-press-conference/