Budget 2026: 23 Tax Loopholes Under Threat
Summary of the 2026 Finance Bill Changes (France)
This text details changes proposed in the 2026 French Finance Bill,focusing on the removal of certain tax benefits and the introduction of new employer contributions. Here’s a breakdown:
1.Removal of Expired Tax Measures:
The bill removes tax measures that are no longer considered to have a budgetary impact. These include:
* Aid related to the 2023 water crisis in Mayotte.
* Tax credits for business leader training and employee buyouts.
* Favorable rules for company buyouts and building donations (dating back to 2019/2022).
* Exceptional depreciation for robotization and additive manufacturing (equipment from 2013-2016).
* Tax exemptions for financial assistance for business creation/takeover and agricultural holding transfers.
* Corporate tax exemption for “French Tremplin” aid (a program for tech start-ups launched in 2019).
2. New “employer Contribution” on “salary Supplements”:
The government aims to reduce “social niches” and overly favorable business schemes. Specifically, they are introducing an 8% employer contribution on various salary supplements, including:
* Restaurant vouchers (used for grocery shopping).
* Holiday vouchers.
* Gift vouchers.
* other benefits financed by CSEs (employee representative committees).
The goal is to discourage companies from substituting salary increases with tax-advantaged benefits.
3. Increased Employer Contribution on Termination Compensation:
To address perceived “optimization” (potentially avoidance) related to employment contract terminations, the bill proposes a 10 percentage point increase in the employer contribution rate applied to conventional termination compensation (rupture conventionnelle) and retirement packages.
In essence, the bill focuses on streamlining the tax system by removing outdated benefits and increasing contributions on certain employee benefits and termination packages, likely to generate revenue and address perceived inequities.