Corporate Taxation: The phase-out of the CVAE has been postponed until 2027.

Originally scheduled for 2024, the elimination of the corporate value-added contribution (CVAE) has now been postponed to January 1, 2027.

This decision, which aims to reduce the administrative and tax burden on employers, is accompanied by a significant measure set to take effect in 2024: the elimination of the minimum CVAE contribution, which will allow half of the companies required to pay this contribution to no longer have to do so.

The CVAE will be phased out gradually through 2027. Currently, this tax applies to businesses or self-employed individuals with annual pre-tax revenue exceeding €500,000. For those with pre-tax revenue exceeding €152,500, only a declaration of value added and the number of employees is required.

By 2023, the CVAE had already been cut in half. Tax rates will continue to decrease until the tax is abolished in 2027. As a result, companies with revenue of less than €2 million will receive a €188 reduction in their CVAE in 2024, compared to €250 in 2023.

The elimination of the minimum CVAE contribution—set at €63 in 2023—represents a major step forward. From now on, the CVAE is only due if the annual amount exceeds €63, which should lead to a significant decrease in the number of businesses required to pay this contribution.

In addition, the rate of the supplementary tax on the CVAE, paid to regional chambers of commerce and industry (CCI), will increase to 9.23% for 2024, up from 6.92% in 2023. This measure is intended to preserve the CCIs’ resources as the CVAE is phased out.

Finally, the adjustments made to the territorial economic contribution (CET)—which consists of the CVAE and the business property tax (CFE)—entail a change in the cap rate, now set at 1.531% of value added for the year 2024. This rate applies to the sum of the CVAE and CFE due for that year. These changes raise questions about the expected impact on businesses and their tax contributions.