Europe · Business news · Policy & Regulation · 09 Sept 2026
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Prime minister Sébastien Lecornu told executives in a letter on 9 September that the 2027 budget would reduce but not abolish the exceptional corporate tax surcharge on large firms, and that it would contain no new taxes. The surtax was introduced in 2025 as a one-year measure and rolled into 2026 under a budget compromise. He also announced a tax incentive for business transfers to employees, with accelerated depreciation of new production equipment under a planned 'Papin Pact', and a review of state support for business. The government lacks a lower-house majority and several opposition parties have said they would reject the budget.
The surtax applies to France's largest companies, so the CAC 40's big domestic taxpayers — luxury groups, banks, TotalEnergies, industrial and utility groups — are exposed through their effective tax rate. A reduction lowers that charge, but the article gives no rate or amount, and the levy stays in place for a third year. The review of business support also touches companies that receive research and decarbonisation aid. Because the government has no majority, what the letter promises still depends on a parliamentary vote.
Reported by Global Banking & Finance Review (Reuters) — “France to reduce corporate tax surcharge and ease employee buyouts in 2027 budget, PM says” ↗ on 09 Sept 2026.
Official series on 09 Sept 2026 or the last day before it, and the latest observation.
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