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Tax Measures in the French Finance Bill 2024

Presented to the Council of Ministers this Wednesday, September 27, the PLF2024 identifies the fight against the tax fraud as one of the three main levers for the consolidation of public finances.

This includes:

1. Strengthening the means of fraud detection, particularly through online platforms;

2. Completing the legal framework applicable to VAT fraud and adapting it to the challenges of the digital economy, with a main focus at:

  • distance sales of services and dematerialized goods by websites located outside the EU which are not collecting VAT due in France;
  • transfer of certificates relating to guarantees of origin of hydrogen, renewable gas and electricity by practicing “carousel” fraud;
  • imports from online sellers escaping VAT payments via “drop shipping”;

3. Strengthening the capacity of the tax administration to control the transfer pricing practices of multinational companies;

4. Responding more effectively, through fiscal penalties (by refusing tax reductions and credits) and criminal liabilities, to the most serious tax frauds, including the crime of incitement to fraud;

5. Securing the framework of tax controllers for carrying out their missions, in particular by relocating controls and anonymizing the identity of agents.

Taxation will also be used for the better achievement of the environmental goals:

1. Implementation starting from 2024 of the “green industries investment” tax credit (C3IV)

2. Extension and adjustment of zero-rate loans in the logic of reducing brown tax expenditures

3. Adaptation of taxation in regard to the pollution and the preservation of resources:

  • reform of water agency fees
  • tax on large operations of long-distance transport infrastructures (motorway and airport concessionaires)
  • reform of penalties and contributions applicable to vehicles

We will closely monitor the tax measures that will be adopted for 2024.

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