France National Assembly debates 2027 budget and corporate taxes

The French National Assembly is engaged in intense debates regarding the 2027 finance bill, marked by significant shifts in fiscal policy. In a narrow vote of 79 to 77, deputies removed the planned renewal of a surtax on large companies with annual turnovers exceeding 1.5 billion euros. This decision, supported by a coalition including the Rassemblement National and members of the presidential majority, is estimated to result in a 5 billion euro loss in projected revenue.

While the Assembly rejected proposals to increase the digital services tax from 3% to 15%, it did adopt an amendment to change how corporate income tax is calculated for multinationals. This new method aims to prevent tax optimization by allocating taxable profits based on the proportion of global turnover generated within France.

Additionally, the government has announced plans to index income tax brackets to inflation by 2.1% for 2027 to prevent a rise in the tax burden for many households. Other legislative discussions have focused on supporting local government finances through the extension of a 600 million euro safeguard fund.