France: Tax-related provisions in finance law for 2023

The most notable tax-related measures in finance law for 2023.

The most notable tax-related measures in finance law for 2023.

The finance law for 2023 was published in the French Official Gazette on 31 December 2022. The most notable tax-related measures are discussed below.

Two-phase abolition of the contribution on companies’ added value (CVAE)

The CVAE (cotisation sur la valeur ajoutée des entreprises) is a component of the territorial economic contribution due by companies that carry out an activity taxable under business property tax (i.e., a non-salaried professional activity carried out on a regular basis) and whose sales turnover is equal to or greater than €500,000.

The CVAE will be abolished in two stages, with the CVAE rates payable by taxpayers for 2023 first reduced by 50% as set out below:


Effective rate before 2021 finance law

Effective rate 2021 finance law

Effective rate 2023 finance bill

Sales below  €500,000

0 %

0 %

0 %

Sales between €500,000 and €3m

0.5% × (sales - €500,000) / €2.5m

0.25% × (sales - €500,000) / €2.5m

0.125% × (sales - €500,000) / €2.5m

Sales between

€3m and €10m

0.5% + 0.9% × (sales - €3m)

/ €7m

0.25% + 0.45% × (sales - €3m)

/ €7m

0.125% + 0.225% × (sales - €3m)

/ €7m

Sales between €10m and €50m

1.4% + 0.1% × (sales - €10m)

/ €40m

0.7% + 0.05% × (sales - €10m)

/ €40m 

0.35% + 0.025% × (sales - €10m)

/ €40m 

Sales over €50m

1.5 %

0.75 %

0.375 %

In 2024, the CVAE will disappear completely.  

Implementation of the EU regulation on addressing energy prices

The EU Council on 6 October 2022, adopted a regulation on an emergency intervention to address high energy prices. Among other measures, the proposal provides for two complementary instruments in the form of a cap on revenues of electricity producers’ revenues and a solidarity contribution on surplus profits in the fossil sector. These exceptional contributions are intended to finance relief measures for households and businesses and to invest in renewable energy sources.

The finance law implements these measures into French law. 

Adjustment of the tax regime for major sporting events

In order to support the organization of forthcoming international sports competitions in France, temporary favorable tax measures have been introduced, including an exemption of the entities in charge of organizing sporting competitions awarded to France from 1 January 2022, as well as their subsidiaries.

Finally, in order to avoid any double taxation, individuals: (1) who will be in France for the sole purpose of partaking in the Paris 2024 Olympic or Paralympic Games or in activities directly linked to their organization and (2) who are resident for tax purposes in a state that has not concluded a tax treaty with France, will benefit, on request, from a tax exemption on their Olympic Games-related income.

For more information, contact a tax professional with KPMG Avocats in France:

Marie-Pierre Hôo | + 33 (0) 1 55 68 49 09 |

Patrick Seroin Joly | + 33 (0) 1 55 68 48 02 |

Philippe Breton | +33 (0) 1 55 68 49 33 |


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