Elimination of final year CVAE
The value-added contribution (VAC) is a form of property tax. The contribution includes the territorial economic contribution. The CVAE is owed by companies and self-employed persons from a certain turnover. It is calculated based on the value added generated by the company.
Companies will all be pleased to find out that the Finance law for 2023 provided for a two-year phase out of the company Value Added Contribution (CVAE).
This is accompanied by a reduction on the territorial economic contribution.
The company Value Added Assessment (CVAE) will be eliminated in 2024. Companies or persons engaged in a self-employed activity and generating annual turnover (CA) above € 500 000 are currently liable for this contribution. It should be added that companies with a VAT-free turnover of more than €152,500 must only make a declaration of value added and employee numbers.
The first step in this phase-out will be the halving of the CVAE in 2023. This means the total tax rates of the CVAE will be divided by 2.
What are the consequences?
Since the territorial economic contribution is made up of the CVAE and the company land contribution (CFE), its ceiling has been modified for 2023. This means that there will be an increase in value added.
If you wish to find out more, do not hesitate to contact us via telephone +33 (0) 1 53 93 94 20 or by mail at [email protected]. Our team of experts will happily assist you with any queries you might have.
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