Postponement of the end of the CVAE and creation of the complementary contribution to the CVAE

The end of the CVAE postponed to 2030

Initially set at 2027, the 2025 budget postpones the abolition of the company value added tax (VAAC) until 2030.

All the tax rates of the CVAE evolve until its abolition:

Payment of a supplementary contribution to the CVAE

Only for the year 2025, a supplementary contribution to the CVAE is applied. It concerns companies liable to pay the CVAE.

It rises to 47,4 % of the CVAE.

Provisions relating to areas covered by tax exemptions

All developments concerning tax-exempt areas are set out in the corresponding brief.

Prohibition of self-certified cash-out software

In order to combat VAT fraud, it is now forbidden for cash-register software publishers to prove their compliance by producing an individual certificate.

Publishers are therefore required to obtain a certificate attesting that the software complies with the requirements regarding the unalterability, security, retention and archiving of the required data.

Replacement of the certificate by an entry on the invoice to benefit from reduced VAT rates on renovation works

Until now, it has been necessary to complete a simplified certificate (Cerfa form n°1301-SD) guaranteeing that the conditions for benefiting from:

• the 10 % intermediate rate of VAT on improvement, conversion, fitting-out or maintenance work;
• the reduced rate of VAT of 5,5 % on renovation or energy improvement works.

Now, in order to simplify the administrative procedures, this certificate is replaced by a single entry on the estimate or invoice for the work carried out.

Creation of an incentive tax for the purchase of green vehicles

To support and accelerate the transition to clean vehicles, the 2025 budget law establishes a annual incentive tax on the purchase of low-emission light-duty vehicles.

This levy applies to companies with a fleet ofat least 100 vehicles.

The company vehicles concerned are:

• passenger vehicles;
• vehicles of category N1 (vehicles designed and constructed for the carriage of goods with a maximum weight of 3,5 tons or less) other than passenger vehicles and with a European bodywork of ‘Pickup truck’ or ‘Truck van’;
• vehicles under of category L6e or of category L7e.

The amount of tax that the company will pay is calculated taking into account 3 factors:

• the annual rate fixed. In 2025, it €2,000 per low-emission vehicle in deficit in relation to the fleet greening objective;
• the deviation from “the integration target” the fleet of low-emission light vehicles (determined annually);
• the annual renewal rate for high-emitting light-duty vehicles.

Provisions concerning large companies

The budget law also contains two main provisions that apply exclusively to large companies:

• the introduction of an exceptional contribution on profits. This measure, which will apply under 1^er financial year ended from 31 december 2025, concerns companies liable for business tax with a turnover not less than € 1 billion (in respect of the financial year for which the contribution is due or in respect of the preceding financial year);
• the creation of a tax on capital reductions resulting from the purchase of their own securities. It shall apply to businesses having their registered office in France and which, during the last financial year, have completed a CAHT: titleContent more than €1 billion.

Extension of the tax and social exemption for tips

In application since 2022, the exemption from tax and social security charges on tips paid is extended for 2025.

It concerns tips not imposed on customers and paid to employees (in contact with customers) whose monthly remuneration is less than 1,6 Smic (2882,88 € gross in 2025).

This has an impact on the trades, such as restaurants, hotels and hairdressers.

The purpose of this measure is to reduce the burden on employers and to protect employees' purchasing power since tips are exempt:

• CSG and CRDS;
• social insurance contributions;
• contributions to family allowances;
• AT-MP contributions;
• the Solidarity Autonomy Contribution (CSA);
• the apprenticeship tax;
• of theAGS: titleContent ;
• of the contribution Final: titleContent ;
• contribution to social dialog;
• the mobility payment;
• the contribution to vocational training (MFF);
• income tax for the employee.

Extension of the mobility payment to the regions

The regions of metropolitan France (except Ile-de-France) and Corsica may introduce a mobility payment for companies of at least 11 employees.

The rate of this payment shall not exceed 0.15% remunerations subject to social contributions paid by the company to employees.

The purpose of this payment is to finance transport infrastructure.

Coverage of 75 % of home-to-work transport costs: extension of exemptions in 2025

Employers bearing the public transport costs of their employees up to 75% (i.e. beyond the 50% compulsory assumption) will continue to be exempt from social contributions and income tax for the year 2025.