Published | Category: Income tax - businesses
Compensatory Tax for Financial Institutions
Two changes will be made to tax legislation in order to extend the application period of the compensation tax and maintain the rates of the compensation tax at their current level for an additional five-year period.
Extension of the application period
It was previously provided that the compensation tax for financial institutions would be eliminated as of March 31, 2019. This period has been extended by five years.
Consequently, the application period for the compensation tax for financial institutions is extended to March 31, 2024.
Maintenance of rates
The current compensation tax rates are maintained for an additional period of five years and will continue to apply until March 31, 2022.
The 2.8%, 2.2%, 0.9% and 0.3% compensation tax rates initially prescribed for the period beginning on April 1, 2017, will apply to their respective tax bases for the period from April 1, 2022, to March 31, 2024.
For more information, see pages A.59 to A.61 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.