Industrial companies are the most penalized by the levels of production taxes in France, according to a report by the Montaigne Institute, which recommends reducing these taxes to improve the competitiveness of companies and create jobs.

Production taxes are all taxes paid by companies, regardless of the amount of their profits. They include in particular the land contribution for companies, the social solidarity contribution of companies (C3S), the tax on built land or the contribution on the added value of companies.

A technical management professional is a person trained in fulfilling operational functions within a company. Hey can use the professional tax preparation software. In addition to applying the methods and technological knowledge typical of the work of the specialty and meeting the resource needs of executive levels, which demands the progressive scientific and technological advance, in the various management sectors of a company or institution. Keep reading and decide on any of the following Administration branches:

A quarter of all corporate taxation

While “other European countries prefer direct taxation (corporate tax, etc., Editor’s note) or consumption (VAT, Editor’s note), and continue to accentuate this trend”, the various French governments “have made the choice not to lower “these production taxes, regrets the report.

  • The reduction in these taxes is one of the recurring demands of companies, which consider that this harms their competitiveness. This is all the more a problem for industrial companies which use a lot of manpower and large premises.
  • As Parliament begins this week examining the 2020 draft budget, the report recommends reducing these taxes by 15.2 billion euros as of next year (via a reduction in property tax, the elimination of sectorial taxes and C3S). This would increase corporate tax revenues thanks to the activity thus generated, and ultimately create 50,000 jobs, according to his estimates.
  • To finance this decrease, he proposes “balanced efforts between companies, consumers and public authorities” via an increase in VAT, a reduction in other tax benefits for companies and a reduction in public spending (or additional debt).

What Happens In Case of Direct News

Direct taxes reforms in developing countries have focused on simplify and increase the tax base for corporate taxes. The introduction synthetic tax based on factors of production and targeting informal enterprises was the answer to the problem. The theoretical qualities of this tax (incentive to production, progressive character) are less obvious in reality. The estimate of turnover according to the factors of production is hazardous due to the characteristics of the production process of micro-enterprises in developing countries. Of our simulations on Madagascar, it appears that the production incentive effects (incidence positive) of the tax seem assured. On the other hand, the existence of returns to scale growing within the sector produces regressive effects.