Global Insight | February 2025

French Financial Act 2025 Update

On February 5, 2025, the French National Assembly passed the Finance Bill, introducing significant corporate and personal tax changes. With key provisions validated by the Constitutional Council on February 13, 2025, the bill aims to reshape taxation for businesses and individuals alike.

Notable measures include an exceptional tax on large corporate profits, an extended phase-out of the CVAE, adjustments to corporate mergers and capital reductions, and updates to innovation and research tax credits. For individuals, the bill implements a new high-income contribution, reforms to furnished rental taxation, and the indexation of the income tax scale.