The Finance Law 2024 was published in the Official Journal on December 30, 2023. Thierry Legrand, Chartered Accountant and Exponens Partner, reviews the main points of interest for Chief Financial Officers (CFOs), in an article for dafmag.fr.
Indexation of the income tax scale to inflation
In order to maintain French purchasing power, the 2023 income tax scale, which will be settled in 2024, is indexed to inflation.
As a result, the limits of the various brackets on this scale have been raised by 4.8%.
Postponement of the end of the CVAE
Contrary to last year’s announcement, the business value-added tax (CVAE) will no longer be abolished, but from 2024 onwards will be progressively reduced over a three-year period, by a quarter, before disappearing altogether in 2027.
New roll-out schedule for electronic invoicing
In line with the public authorities’ previous announcement, the requirement to receive electronic invoices has been officially postponed to September 1, 2026.
Obligations to issue electronic invoices and e-reporting will come into force in two stages: September 1, 2026 for large structures and ETIs, and September 1, 2027 for SMEs.
A greener tax system, including tougher vehicle taxation
From 2024 onwards, vehicle tax rules will become stricter.
The vehicle malus will be reinforced, with the eligibility threshold lowered from 123 to 118 g CO2/km, and a final bracket will apply above 193 g/km for a tariff of 60,000 euros (instead of 225 g/km and 50,000 euros in 2023).
In addition, the penalty will no longer be capped at 50% of the vehicle’s purchase price.
For professionals, the threshold for eligibility for the annual CO2 emissions tax will be reduced from 21 to 15 g/km.
In addition, from 2025, the annual tax on vehicle age will be replaced by a tax based on atmospheric pollutant emissions, according to the vehicle’s Crit’Air category.
Points of vigilance for 2024
The French Finance Act strengthens the administration’s position on transfer pricing by extending the obligation to maintain documented transfer pricing documentation between…
Source : Guest column by Thierry Legrand in DafMag.fr – January 16, 2024
