Flat Tax 2025: What Changes for Businesses Under the New Finance Law

Published on February 17, 2025 – Updated on February 19, 2025 – Legal and Administrative Information Directorate (Prime Minister)

Postponement of the elimination of CVAE, extension of tax exemptions for certain zones, ban on self-certified cash register software, mobility contribution, and more—its provisions are a key focus. Entreprendre.Service-Public.fr provides details on the provisions in the 2025 finance law and their impact on businesses.

Postponement of CVAE Elimination to 2030: Flat Tax 2025 Implications

The elimination of the CVAE (Contribution on the Value Added of Businesses) has been postponed to 2030. Initially planned for 2027, this delay means that it will see a gradual decrease in CVAE rates until its eventual removal.

Tax Rates on CVAE: Flat Tax 2025 Structure

The law defines the new tax rates for it in line with turnover brackets. Companies with annual revenue between €500,000 and €3 million will see the following changes from 2025 to 2029:

• 2025: 0.063% of turnover above €500,000
• 2026-2027: 0.094% of turnover above €500,000
• 2028: 0.063% of turnover above €500,000
• 2029: 0.031% of turnover above €500,000

This gradual change impacts businesses in specific revenue ranges, directly influencing the flat tax 2025 framework.

Supplementary CVAE Contribution for 2025

For businesses subject to the CVAE, a supplementary contribution will apply in 2025. This flat tax 2025 provision sets the supplementary tax at 47.4% of the total CVAE.

Tax Exemptions for Certain Zones

The finance law provides updates on tax exemptions for companies operating in specific zones. More detailed information is available through the corresponding brief. Businesses in these areas can expect extended benefits, impacting their overall tax planning under the its system.

Green Vehicle Acquisition Tax: Encouraging Sustainable Business Practices in 2025

To promote the transition to clean vehicles, it includes a new tax on businesses acquiring low-emission vehicles. Companies with fleets of at least 100 vehicles will need to pay this annual tax. The tax amount is calculated based on emission reduction goals and annual fleet renewal rates.

Impact on Businesses Using Cash Register Software: Flat Tax 2025 Regulation

A significant update under it includes a ban on self-certified cash register software. Developers must now obtain a certificate confirming compliance with data security, immutability, and archiving requirements. This will impact businesses that rely on cash registers for daily operations.

Simplified VAT Process for Renovation Work: Flat Tax 2025 Changes

The flat tax 2025 simplifies the process for businesses to claim reduced VAT rates on renovation work. Previously, a simplified certificate was needed to benefit from the 10% VAT rate for improvements and the 5.5% rate for energy-efficient work. Now, businesses can simply include a statement on their invoice or estimate.

Special Provisions for Large Enterprises: Flat Tax 2025 Impact

The flat tax 2025 brings special provisions for large enterprises:

• Contribution on Profits: Large companies with a turnover of €1 billion or more will need to pay an exceptional contribution on their profits, effective from the first financial year starting after December 31, 2025.
• Capital Reduction Tax: Companies that reduce their capital after repurchasing their own shares will face a tax, affecting businesses with a turnover of €1 billion or more.

Extension of Exemption for Tips: Flat Tax 2025 Benefits

The exemption of social and fiscal charges on tips remains in place for 2025 under the flat tax 2025 provisions. Tips paid to employees in sectors like hospitality, retail, and catering (earning less than 1.6 times the minimum wage) are exempt from various taxes and contributions.