France Tax Agency Clarifies Group Company Eligibility for Reduced Corporate Income Tax Rate

The French General Directorate of Public Finance April 14 clarified group company eligibility for the reduced corporate income tax (CIT) rate. The clarification includes that: 1) the group’s consolidated turnover is used to verify eligibility, regardless of whether the group is fiscally integrated; 2) the reduced rate applies to companies with turnover not exceeding 10 million euros (US$11.8 million) on profits not exceeding 42,500 euros (US$50,108) per year, and is set at 25 percent for financial years beginning in 2001, and 15 percent for financial years beginning on or after Jan. 1, 2002; 3) companies that incorrectly applied the rate ...