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10/01/2014 PROFILE > Chef d'entreprise , Service administratif et financier , Direction , Service comptable , Expert-comptable

What tax system for your company in 2014?

In 2014, the exceptional contribution on corporation tax will increase from 5% to 10.7%. This increase only however concerns companies with turnover in excess of 250 million euros. Moreover, a new tax on high remuneration has been created, standing at 50% of the fraction of the wage exceeding 1 million euros. This tax takes the form of an employer contribution.

VAT increases were effective as at 1 January 2014. The normal rate increased from 19.6% to 20% and the intermediary rate from 7% to 10%.

Now, in certain administrative domains, it is up to the tax payer to justify to the administration the well-founded nature of an operation and no longer the latter to demonstrate the abnormal nature thereof. Moreover, with the increase in the deadline for prescription and the increases in sanctions, as well as the creation of new mitigating circumstances, fraud repression and tax evasion measures have been stepped up. Certain of these measures should however be approved by the Constitutional Council.

The Competitiveness and Employment Tax Credit (CICE) may allow companies to make savings of 6% of their workforce in 2014. This reduction in taxes does not concern remuneration in excess of 2.5 times the minimum wage.