The main changes introduced by the Finance Act for 2019, provided for by Act No. 56/2018 of 27 December 2018, mainly concern:
Corporate tax and personal income tax (IRPP)
- Reduction of the corporate tax rate for high value-added sectors
- Renewal of the incentive to create businesses through an income-tax or corporate-tax exemption
- Additional depreciation deduction for renovations
- Increase in the value of fully depreciable fixed assets
- Encouraging companies to renew their operating assets
- Introduction of a legal asset-revaluation system for industrial companies
- Revision of late-payment penalties on taxes
- Support for the financial restructuring of hotels
- Removal of the preferential regime for exports and for financial institutions working with non-residents
- Introduction of a contribution to social security funds
- Postponement of the 35% rate for certain companies
- Subjecting permanent establishments of resident companies in tax havens to a 25% withholding tax
VAT, customs duties and local tax (TCL)
- Clarifying the taxation of real estate development
- Reducing the taxation of low-powered (“4 chevaux”) vehicles
- Exempting 8- and 9-seat vehicles for people with disabilities from consumption duty and circulation tax
- Easing the burden of the tax on built properties
- Reducing the VAT rate applied to household internet services
Registration and stamp duty
- Increasing the value of housing exempt from proportional registration duties
Investment incentives
- Suspension of VAT on equipment intended for the agricultural sector
- Extending the incentive for companies to list their shares on the stock exchange
- Clarifying the scope of Article 15 of Act 2019-47 of 29 May 2019 on improving the investment climate
Other provisions
- Measures to facilitate the regularisation of taxpayers’ situations
- Obligation to declare bank and postal accounts
- Creation of a database of bank and postal accounts
- Obligation for associations to file a declaration of existence
- Harmonising tax legislation with international standards on transfer pricing
- Lifting tax professional secrecy for certain public authorities and enterprises
- Establishing a mechanism to track certain products
- Encouraging small operators to register with the tax system and the CNSS
- State coverage of employer contributions for the textile, clothing, leather and footwear sector
- Creation of the Bank of the Regions
- Activating the role of e-government
- Encouraging remote registration for schools, colleges and high schools
- Rationalising the use of cash
- Widening the scope of electronic invoicing
- Setting a maximum deadline for notifying automatic tax-assessment orders
- Activating international conventions on information exchange and administrative assistance in tax matters
