The French Finance Act for 2025 was adopted by the Parliament on February 6, 2025, and will become formally enacted after publication in the official gazette.
The most significant tax-related measures affecting companies include:
- Introduction of an exceptional surtax on corporate income tax applicable to the largest companies with significant profits
- New adjustment of the phasing out the contribution on companies’ added value (cotisation sur la valeur ajoutée des entreprises (CVAE))
- Tax on share buy-backs
- Introduction of a beneficial ownership condition in the French tax Code for withholding tax on dividends
- Update of Pillar Two rules to implement OECD guidance from December 2023
- 0.1% increase in the financial transaction tax rate (from 0.3 to 0.4%)
Read a February 2025 report prepared by KPMG Avocats
Read a February 2025 report prepared by KPMG’s EU Tax Centre that describes the updates to the Pillar Two rules