Each finance law represents a source of key information and a basis for reflection for all chartered accountants. It guides us on a daily basis, provides us with clarifications and allows us to better assist our respective clients.
A single article would not be enough to cover it all. Today, we offer you a general overview of the law as well as some examples of the new scales defined.
Summary of the 2023 Finance Act
The Finance Act for the year 2023, LAW n° 2022-1726 of December 30, 2022 of finance for 2023published in the Journal Officiel on December 31, 2022, provides for tax measures for individuals and companies.
The main data of the law concern aids to face the increase of energy prices, aids in favor of the ecological transition, tax measures for individuals and professionals and a new arrangement of the levy at source of the income tax.
This law is based on growth forecasts of 2.7% in 2022 and 1.0% in 2023, as well as estimated inflation of 5.3% in 2022 and 4.2% in 2023.
The devices to face the price increase
These devices include:
- The extension of the tariff shield for gas and electricity in 2023
- Limiting rate increases to 15% for households, condominiums, public housing, small businesses and smaller municipalities,
- A fuel allowance of €100 paid to the 10 million poorest workers who use their car to go to work.
Aid for the ecological transition
These aids include:
- The renewal and reinforcement of aid for the purchase of bicycles, with a renewed ecological bonus of €300 for the purchase of a new bicycle, and an increase in the eligibility threshold to benefit from the aid.
- The MaPrimeRénov' Sérénité scheme has been strengthened and is more oriented towards more efficient renovation operations
- A new social leasing scheme will be launched in the second half of 2023, offering an electric car rental service at €100 per month for low-income households.
Tax measures for individuals
Tax measures for individuals include:
- A reduction in income tax: the brackets of the income tax scale will be revalued by 5.4% for the 2022 income tax.
- The threshold for requesting a reduction in the withholding tax is lowered to 5% instead of 10%.
- The ceiling of the tax credit for childcare expenses for a child under 6 years old has been raised to €3,500.
- The additional half tax share is extended to all widows and widowers of veterans.
- The tax credit for a first press subscription is eliminated for subscriptions taken out on or after January 1, 2023.
The EMP Resilience
The PGE Resilience (state-guaranteed loan), which was set up to support companies that have suffered economic hardship as a result of the war in Ukraine, has been extended until December 31, 2023 (it was originally scheduled to end on December 31, 2022). This extension is also valid for the possibility of adjusting the repayment by VSEs and SMEs.
Who is affected by this extension?
- Companies that have not obtained a Resilience EMP by December 31, 2022 and would like to;
- Those that have obtained a Resilience EMP without reaching their 15% of sales cap. These companies will be able to apply to their bank for the remaining portion of this loan.
Focus on thresholds
| Revaluation of IR thresholds |
| Revalued IR scale of 5.40%.
- Up to €10,777: 0%. |
| BIC & BNC |
Micro-enterprise regime :
Simplified taxation system BIC :
Turnover threshold for a balance sheet exemption :
|
| Basic VAT exemption |
The new thresholds are applicable for 2023, 2024 and 2025:
The increased thresholds for the basic VAT exemption are now :
The system of simplified taxation system for VAT applies to companies whose revenues do not exceed :
|
| Corporate income tax |
| The portion of the profit taxable at the reduced reduced rate of corporation tax has been revalued. It has been increased from €38,120 to €42,500. |
Sources: LegiFrance and BPIFrance
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