Corporate Surtax Extension to Deter French Business Investment

French businesses warn the proposed extension of a corporate tax surcharge by another year will have a direct impact on investment decisions made in the country.

The extension, which is expected to raise €8 billion in revenues and forms a vital part of the French government’s renegotiated 2026 budget, would also cause knock on effects to smaller businesses, corporations argue.

“Large companies will have to make radical decisions in 2026, with direct consequences for investment and employment,” Medef, France’s main business lobby, warned on social media, adding the government’s decisions sent a “catastrophic signal.”

France introduced a corporate surtax ...