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France: Tax-Efficient Sectors

Tax Incentives Announced In 2008

Under a stimulus plan unveiled by President Sarkozy in December 2008, companies will benefit from approximately EUR11.5bn in accelerated tax credit payments over the course of the coming year.

Traditionally reimbursed over a three-year period, tax credits obtained for research will now be repaid at the beginning of 2009 in one lump sum, a measure estimated at roughly EUR3.8bn. Value-added tax credits will also be reimbursed immediately, amounting to a further EUR3bn. Registered losses, incurred by businesses in 2008, will be compensated, with EUR2bn available from 2009.

Other measures, designed to alleviate the burden on businesses, include accelerating depreciation on new investments in 2009, thereby reducing corporate tax, and an initiative whereby the government pledges to increase its deposit payments from 5% to 20%, following the signing of a public contract.

Under a stimulus plan unveiled by President Sarkozy in December 2008, companies will benefit from approximately EUR11.5bn in accelerated tax credit payments over the course of the coming year.

Traditionally reimbursed over a three-year period, tax credits obtained for research will now be repaid at the beginning of 2009 in one lump sum, a measure estimated at roughly EUR3.8bn. Value-added tax credits will also be reimbursed immediately, amounting to a further EUR3bn. Registered losses, incurred by businesses in 2008, will be compensated, with EUR2bn available from 2009.

Other measures, designed to alleviate the burden on businesses, include accelerating depreciation on new investments in 2009, thereby reducing corporate tax, and an initiative whereby the government pledges to increase its deposit payments from 5% to 20%, following the signing of a public contract.

 

 

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