As the final step in the legislative process of the 2025 budget, the Conseil d’État has issued its decision, validating most of the text and enabling its promulgation by the President of the Republic. And among the main measures introduced by this Finance Act is the postponement of the abolition of the contribution on the added value of companies (CVAE(1)).
As a reminder, the CVAE, which, along with the business property tax (CFE(2)), constitutes one of the two components of the territorial economic contribution (CET(3)), was initially set to be gradually reduced from 2024 to 2026, with a definitive elimination planned for 2027.
Unfortunately for companies, this downward trajectory has been reviewed and corrected by the finance law for 2025.
A postponement of the abolition to 2030
The gradual abolition of the CVAE, initially planned for completion until 2027, has been frozen and postponed to the years 2028 and 2029, with full elimination stated for 2030, resulting in a three-year delay. Consequently, the maximum tax rate applicable in 2024, set at 0.28%, will also apply for 2026 and 2027. This rate will be reduced to 0.19% in 2028 and 0.09% in 2029. Notably, the reduction in the CVAE initially planned for 2025 will still apply due to the late adoption of the budget, but an additional contribution will be created to compensate for it.
In parallel, the reduction in the CET cap rate is also postponed, except for 2025. The cap rate will remain set at 1.531% of value added for 2026 and 2027, then decrease to 1.438% in 2028 and 1.344% in 2029. From 2030 onward, this cap will apply only to the CFE, with its rate reduced to 1.25%.
An additional contribution for 2025
For the CVAE due for 2025, the maximum tax rate decreases to 0.19% and the CET cap rate to 1.438%.
To compensate for this decrease-which would not have occurred had the Finance Act been adopted at the end of 2024-an additional contribution to the CVAE is introduced for the budget year ending on or after February 15, 2025. This additional contribution will be equal to 47.4% of the CVAE due in 2025 and result in a single advance payment of 100%, to be paid by September 15, 2025, at the latest. A final settlement, including any necessary balance payment, must be made no later than May 5th, 2026, based on the declaration of liquidation and regularization.
(1) Cotisation sur la Valeur Ajoutée des Entreprises (CVAE). (2) Cotisation Foncière des Entreprises (CFE). (3) Contribution Économique Territoriale (CET).
