Tax 2025: Key Changes for Businesses Under the New Finance Law
Published on February 17, 2025 – Updated on February 19, 2025 – Directorate of Legal and Administrative Information (Prime Minister’s Office)
The 2025 tax reforms introduce significant changes for businesses, including the postponement of the CVAE abolition, tax exemption updates, restrictions on cash register software, and new mobility contributions. This guide covers the essential tax updates for 2025 that businesses need to know.
Postponement of the CVAE Abolition and New Supplementary Contribution
CVAE Abolition Delayed Until 2030
Initially scheduled for 2027, the abolition of the Cotisation sur la Valeur Ajoutée des Entreprises (CVAE) has been postponed to 2030 under the 2025 tax reforms.
The CVAE tax rates will gradually change until its elimination:
Annual Revenue (Excl. Tax) | Effective Tax Rate 2025 | Effective Tax Rate 2026-2027 | Effective Tax Rate 2028 | Effective Tax Rate 2029 |
Less than €500,000 | 0% | 0% | 0% | 0% |
Between €500,000 and €3 million | 0.063% x (Revenue – €500,000) / €2.5 million | 0.094% x (Revenue – €500,000) / €2.5 million | 0.063% x (Revenue – €500,000) / €2.5 million | 0.031% x (Revenue – €500,000) / €2.5 million |
Between €3 million and €10 million | 0.063% + 0.113% x (Revenue – €3 million) / €7 million | 0.094% + 0.169% x (Revenue – €3 million) / €7 million | 0.063% + 0.113% x (Revenue – €3 million) / €7 million | 0.031% + 0.056% x (Revenue – €3 million) / €7 million |
Between €10 million and €50 million | 0.175% + 0.013% x (Revenue – €10 million) / €40 million | 0.263% + 0.019% x (Revenue – €10 million) / €40 million | 0.175% + 0.013% x (Revenue – €10 million) / €40 million | 0.087% + 0.006% x (Revenue – €10 million) / €40 million |
Over €50 million | 0.19% | 0.28% | 0.19% | 0.09% |
Supplementary Contribution to the CVAE
For 2025 only, businesses subject to the CVAE must pay an additional tax contribution amounting to 47.4% of the CVAE.
Tax Exemptions in Designated Zones
The 2025 tax updates include revised tax exemption policies for specific economic zones, aiming to support business growth in designated regions.
New Tax for Green Vehicle Acquisition
To promote the transition to low-emission vehicles, the 2025 tax law introduces an annual incentive tax for businesses with a fleet of at least 100 vehicles.
Eligible business vehicles include:
- Passenger vehicles
- Category N1 vehicles (light commercial vehicles up to 3.5 tons, excluding passenger cars)
- Category L6e and L7e vehicles
The tax calculation considers:
- An annual fixed rate (€2,000 per non-compliant vehicle in 2025)
- The difference between the company’s fleet and the national green vehicle target
- The renewal rate of high-emission vehicles
Ban on Self-Certified Cash Register Software
As part of the 2025 tax compliance measures, software vendors can no longer provide self-issued compliance certificates. Instead, software must be certified by an accredited body to ensure data integrity, security, and proper tax recordkeeping.
Simplification of VAT Reduction for Renovation Work
Previously, businesses had to complete a formal certificate to qualify for reduced VAT rates (10% or 5.5%) on renovation work. Now, a simple note on the invoice suffices, streamlining tax procedures in 2025.
Tax 2025 Changes for Large Enterprises
Two significant tax measures apply exclusively to large businesses:
- Exceptional Tax on Profits: Companies with an annual revenue of at least €1 billion must pay a temporary tax on profits from December 31, 2025.
- Capital Reduction Tax: A new tax applies to large companies that buy back and cancel their own shares.
Tax and Social Exemptions on Tips Extended
The tax exemption on employee tips, introduced in 2022, continues in 2025. This measure applies to workers earning below 1.6 times the minimum wage (€2,882.88 gross monthly in 2025) in service industries such as hospitality and retail.
Exemptions include:
- Social security contributions
- Unemployment insurance
- Various business-related contributions
- Personal income tax for employees
Independent workers are not eligible for this tax exemption.
Expansion of Mobility Tax Contributions Across France
As part of the 2025 tax law, all regions in mainland France (excluding Île-de-France) and Corsica can introduce a mobility tax on businesses with at least 11 employees. The tax rate is capped at 0.15% of gross salaries and will fund transportation infrastructure.
Continuation of 75% Employer Contribution for Commuting Costs
Businesses covering up to 75% of employees’ public transport costs (above the mandatory 50%) will remain exempt from social security contributions and income tax for 2025.
Conclusion: Key Tax 2025 Takeaways
The 2025 tax law introduces crucial reforms affecting businesses, from CVAE changes to tax exemptions and environmental incentives. Staying informed about these tax updates is essential for compliance and strategic financial planning.
