In the last stage of the reform promised at the start of Emmanuel Macron’s five-year term, the normal rate of corporation tax (IS) will drop to 25% in 2022, against 33.3% in 2017.
The schedule will have been kept despite the health crisis. The normal corporate tax rate (IS) will drop to 25% for all companies in 2022, the last stage of the reform promised by the government in 2017. Then set at 33.3%, the rate has been gradually lowered from year to year. A significant effort for the state budget: this represents, in principle, an overall reduction of 11 billion euros over the entire five-year term of Emmanuel Macron.
With a tax rate down to 25%, a drop of 8.3 points in five years, France is approaching the average rate applied in OECD countries, after resisting the downward trend for a long time. observed in Europe and in most industrialized countries since the 1990s. the average CIT rate in member countries fell from 32.3% in 2000 to 22.9% this year (-9.4 points).
Backward from the United States
Other countries, with a tax rate hitherto much lower than France, are taking the opposite path, but are also converging towards the OECD average. Across the Channel, the British are will be raised from 19% to 25% by 2023, to finance part of the huge public deficit caused by the measures to aid the economy. Same ambition in the United States, where Joe Biden hopes to raise the US rate to 26.5% against 21% currently, but the reluctance of some moderate Democrats could thwart his plans.