Changes for Businesses with the 2025 Budget Adoption
On February 18, 2025, the French government adopted the 2025 budget, introducing several changes that will impact businesses operating in the country. The main modifications include:
Taxation:
- Corporate income tax (CIT): The CIT rate remains unchanged at 25%.
- Value-added tax (VAT): The standard VAT rate increases from 20% to 21%. Certain essential goods, such as food and medical products, will remain exempt from VAT.
- Research tax credit (CIR): The CIR is extended to all research and development (R&D) expenses incurred by companies. The credit rate is increased to 30% for small and medium-sized enterprises (SMEs).
Social Security contributions:
- Employer contributions: The employer contribution rate for unemployment insurance is reduced by 1 percentage point for companies with less than 50 employees.
- Employee contributions: The employee contribution rate for family allowances is reduced by 0.5 percentage points.
Employment:
- Minimum wage: The minimum wage (SMIC) is increased by 3% to €1,208.80 gross per month.
- Apprenticeships: The government introduces new incentives for companies to hire apprentices, including financial aid and reduced social security contributions.
- Job retention scheme: The exceptional job retention scheme put in place during the COVID-19 pandemic is extended until the end of 2025.
Innovation and investment:
- Innovation tax credit: The innovation tax credit is extended to cover digital transformation expenses.
- Strategic investment fund: The government establishes a new strategic investment fund to support companies in key sectors, such as energy transition and digital technologies.
Other changes:
- Energy prices: The government announces measures to support businesses facing rising energy costs, including subsidies and loans.
- Public procurement: The government simplifies public procurement procedures for SMEs.
- Export support: The government increases funding for export support programs to help French companies expand into international markets.
- Business creation: The government introduces new measures to simplify the process of creating and registering a business.
Impact on Businesses:
The changes introduced by the 2025 budget are expected to have a positive impact on businesses, particularly SMEs. The reduction in social security contributions should lower their labor costs and make them more competitive. The extension of tax credits and incentives for R&D and innovation should encourage companies to invest in these areas. The measures to support energy prices and exports should provide additional assistance to businesses facing challenges in these areas.
Overall, the 2025 budget aims to create a favorable economic environment for businesses in France, fostering growth, innovation, and competitiveness. It remains to be seen how these changes will be implemented and what their real-world effects will be.
Ce qui change pour les entreprises avec l’adoption du budget 2025
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