The French Ministry of Economy and Finance is considering extending an exceptional profit surtax on major corporations into the 2027 budget. The measure is among several options under review for France's next annual finance bill.
French economic newspaper Les Échos reported the potential extension, citing a source close to the government who said maintaining the surtax at full rate was hardly in doubt. Contacted by news agency Agence France-Presse, the ministry did not deny the report, stating that officials were studying multiple budgetary avenues but nothing had been finalized.
The corporate tax surcharge applies to around 300 companies operating in France with annual turnover exceeding 1.5 billion euros. Public finance forecasts indicate the levy will generate 7.3 billion euros for the state this year.
Under the policy, the corporate tax rate rises from the standard 25 percent to 30.15 percent for firms with annual revenue between 1.5 billion euros and 3 billion euros. For corporations generating more than 3 billion euros, the tax rate reaches up to 41.2 percent.
Lawmakers originally introduced the temporary contribution in the 2025 budget for a single year, but ministers later renewed the measure for 2026. Standard French corporate income tax stands at 25 percent, but temporary surcharges have repeatedly been utilized to bolster public finances.
Business leaders voice disappointment
Business lobby groups expressed little surprise at the potential extension. Patrick Martin, president of the Mouvement des Entreprises de France, anticipated the continuation as early as June 22 following a lunch with Prime Minister Sébastien Lecornu during an executive council meeting of the employers' organization.
Martin said the surcharge was among the topics discussed, adding that he regretted the government was failing to keep its word. The Mouvement des Entreprises de France, universally known as Medef, is the principal federation representing French employers and corporate leaders in national economic discussions.
Wider budget outlook
Broader details regarding the 2027 budget remain limited. The government has set a preliminary target capping ministry spending growth at 0.4 percent, with explicit exceptions for national defense and debt servicing obligations.
In late July, Prime Minister Sébastien Lecornu advocated fiscal stability, defining the policy as avoiding tax increases or new taxes. However, Lecornu did not rule out targeted adjustments to specific tax loopholes.
French government ministers are scheduled to gather on Monday for a cabinet meeting following the summer break. Budget proposals in France are prepared by the Ministry of Economy and Finance, commonly referred to as Bercy due to its headquarters in eastern Paris, before being submitted to parliament as part of the annual finance bill.
