Large French companies benefit proportionally more from tax credits than smaller companies, says the Council for Compulsory Fees (CPO) in a study published Tuesday. “Large companies subject to Corporation Tax (IS) all benefited in 2019 from at least one tax credit compared to 61% of medium-sized companies (ETI), 30% of small and medium-sized companies and only 8% of microenterprises”, details this institution deposited in the Court of Accounts.
Another observation of the members of the CPO, “large companies received 42% of the tax credits in 2019, while they only responded for 38% of the gross IS.”
An unstable effective tax rate
In his study carried out at the request of the Finance Commission of the Assembly chaired by the deputy of LFI Eric Coquerel, which prepares a report on tax differentials between companies, the CPO also points to the instability of the effective tax rate of companies (the corresponding to the taxes actually paid). “Between 2009 and 2022, the amplitude of variation of the average effective tax rate for large companies represents 12.4 points in France. The unweighted average for the euro zone is 4.9 points”, compares the institution.
While opposition MPs have singled out some big companies in recent months for their “super profits”, the CPO says the margin rate depends more on the sector of activity than the size of the company. Based on data from 2019, which predates the recent “super profit” debates, the CPO estimates the average margin rate at “65% real estate, 30% industrial, 28% services, 24% services (excluding real estate) and transportation and only 21% under construction.”
Source: BFM TV
