France Plans to Increase Taxes for the 300 Largest Companies Temporarily

The French government is preparing a temporary increase in taxes for large companies and wealthy individuals as part of a plan to reduce the budget deficit. The country’s authorities are planning spending cuts and tax increases of around 60 billion euros in 2025, and expect to reduce the budget deficit to 5% of GDP from 6.1% of GDP this year.

The tax increase will be temporary – for one or two years- and will only affect companies with an annual income of 1 billion euros, said Prime Minister Michel Barnier in France 2. Thus, it will affect about 300 of the largest companies in the country, he noted.

In the case of individuals, tax increases will only apply to the wealthiest people, with annual incomes of 500,000 or more couples, Barnier said. This will allow the budget to attract around 2 billion euros per year, he added.

In total, the tax increase for large companies and individuals will raise about 20 billion euros in the budget, the French government estimates. The French government is planning a significant fiscal austerity next year, with budget cuts for various ministries, local authorities, and the social protection program.