The main provisions set out in Act No. 46-2020 of 23 December 2020 establishing the Finance Act for 2021 can be summarised as follows:
Corporate tax and personal income tax (IRPP)
- Revision of the corporate tax rate to 15% (Art. 14)
- Revision of the tax regime for income from movable capital (Art. 17)
- Extension of the flat-rate income-tax regime (BIC category) from 4 to 6 years (Art. 18)
- Encouraging investment and saving (Art. 16)
- Encouraging individuals to acquire residential housing during 2021 and 2022 (Art. 19)
- Introduction of a duty on online betting and games of chance (Art. 24)
VAT, customs duties and local tax (TCL)
- Removal of the 7% VAT rate for fixed-line and fixed-internet services provided by telecom operators and for domestic-use internet providers, and application of the telecom levy on sales of fixed and mobile phones and internet access keys (Art. 26)
- VAT exemption on medicines and pharmaceutical products at the wholesale and retail stages (Art. 25)
- Revision of the consumption duty on beer and wine (Art. 20)
- Reduction of the consumption-duty rate on quads, yachts and other pleasure or sports boats and craft (Art. 21)
- Revision of the consumption duty on certain tobacco products (Art. 22)
- Suspension of VAT and customs duties on certain products intended for agriculture (Art. 28)
Registration and stamp duty
- Easing the procedures for refunding proportional registration duties on the acquisition of agricultural land intended for an agricultural investment (Art. 29)
Incentives
- Measures for tourism and craft businesses (Art. 32)
- Measures for businesses affected by the repercussions of the spread of COVID-19 (Art. 33)
- Encouraging donations to the State, local authorities, companies and public institutions, and to associations working in the support and protection of people without family support and people with disabilities (Art. 27)
Other provisions
- Easing the tax regulations on transfer pricing (Art. 15)
- Creation of a fund to support decentralisation, settlement, adjustment and solidarity between local authorities, financing their budgets (Art. 13)
- Support for e-government and simplification of procedures (Art. 35)
- Introduction of a levy on sugar (Art. 23)
- Reducing the tax authority’s response times to taxpayer objections on audit results (Art. 30)
- State coverage of electronic-payment fees (Art. 36)
- Linking the payment of circulation taxes (vignettes) to the regularisation of the tax situation (Art. 31)
