According to our colleague, La Vie Eco, CGEM is about to finalize its tax proposals to the 2017 Finance Act . The proposals of the employers will be validated late September 2016.
Indeed, in its double number 09 to 22 September, our colleague La Vie Eco reported that the CGEM has already received all complaints from the industry federations and it is well advanced in the preparation for cross-cutting measures. According to the same source, these proposals will be approved by the Board of Directors of CGEM scheduled for late September 2016.
The first priority is the proposed introduction of a progressive corporate tax. The second major complaint concerns the establishment of a tax group. This proposal will allow groups to consolidate their results in order to prevent each of their subsidiaries from being taxed differently (silos taxation), as is done currently, reports our colleague in the number cited above.
Moreover, the CGEM makes several proposals including a set of measures relating to corporate tax, in order to encourage investment and the creation of businesses and jobs. Among these measures: the exemption of corporate tax in time for all sectors; the reintroduction of the investment allowance; reduction of the corporate tax realizing a capital increase; reducing the tax rate on capital gains on the sale of the production tool; the elimination of registration fees related to the transfer action and the generalization of the principle of reimbursement of VAT credit whatever its origin.Sectoral grievances are also part of the proposals that will be validated by CGEM. This will support: the generalization of concealed VAT for food operators; a holiday card offered by tourism operators; extension of VAT exemption for entertainment and leisure facilities; a new status for poultry farmers; an overhaul of the rental tax system ; return to a flat 20% rate for the tax on real profits ; the alignment of the mining sector on the tax regimen of exporters and finally the establishment of a provision for recovery of a mineral deposit.
In terms of green business, CGEM, as reported by La Vie Eco, will also make its proposals for a green tax. Employers should thus propose the establishment of a special accelerated depreciation scheme for industrial equipment with reduced emissions. CGEM will also defend the interests of car importers by offering special tax regime for clean vehicles. The idea is to exempt import fees for these type of vehicles, the sticker and the luxury tax. On the same note, importers propose the establishment of a right to anti-pollution stamp which would be levied in vehicle sales not meeting the emission limits.
