Tax policy directorate – Bureau a

If turnover excluding VAT is: 
The effective tax rate is: 
< €500,000
0% 
500.000 
≤
Turnover 
≤
€3,000,000 
0.5% x (Turnover - €500.000) / €2,500,000 
3,000,000 < Turnover 
≤
€10,000,000 
0.5% + 0.9% x (Turnover - €3,000,000) / €7,000,000 
10,000,000 < Turnover 
≤
€50,000,000 
1.4% + 0.1% x (Turnover - €10,000,000) / 
€40,000,000 
> €50,000,000
1.5% 
The amount of relief is increased by €1,000 for businesses with turnover of less than €2,000,000.
Moreover, for companies with turnover of more than €500,000, the minimum contribution on business 
value added (CVAE) is €250. 
The contribution on business value added is calculated on the turnover recorded and value added 
generated during the reference period (the year for which the taxation applies).
Turnover and value added used in respect of the contribution on business value added are defined 
differently according to the company’s business regime: ordinary law companies (those receiving non-
commercial profits (BNC) and which use cash-based accounting and those receiving income from 
property), credit institutions and accredited investment companies, financial instrument management 
companies, companies formed to carry out a single financing transaction, insurance and reinsurance 
companies, mutual insurance companies and provident institutions. 
Value added includes turnover plus or less items expressly provided for by Article 1586 sexies CGI. 
For each regime, the nature of the revenue and expenses used to calculate turnover and value added 
factors in legal, economic and accounting considerations which are specific to each of the five business 
sectors concerned by these regimes. 
For ordinary law companies, taxable value added may not be more than:
• 
80% of turnover corresponding to taxable business activity for taxpayers having turnover of 
€7,600,000 or less; 
• 
85% of turnover corresponding to taxable business activity for taxpayers having turnover of 
more than €7,600,000. 
Taxpayers carrying on their business activity on 1 January of the tax year owe the contribution on 
business value added. In respect of restructuring operations carried out as from 22 October 2009, and 
under certain conditions, the turnover of each liable company involved in the operation corresponds to 
the total turnover of the liable and non-liable companies involved in the restructuring operation. 
business premises contribution under Article 1466 F CGI is subject, if they so request, to an allowance at the same 
rate, up to €2,000,000 of value added. 

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For companies belonging to a group as stipulated in Article 223 A CGI, starting with taxation for 2011, 
the threshold and scale of the contribution on business value added for each company is evaluated 
using the turnover of all the group’s member companies. Beginning with taxation for 2019, this 
consolidation will not apply to companies belonging to a group whose parent company benefits from the 
reduced corporate tax rate and for which the turnover of each group member is less than €7.63 million.
95
For industrial plants, the elements used to allocate the tax base and, from this, the revenue from the 
contribution on business value-added (CVAE) (staffing levels and rental value of each establishment) 
are assigned a weighting factor of 5, starting from the CVAE owed for 2014, in order give greater appeal 
to those of France's regions that agree to welcome this type of establishment
96.
. 
The contribution on business value-added paid to local authorities in 2015 came to €16.63 billion.