The French government on September 28 released the draft budget for fiscal year 2021 (‘the draft budget’). The draft budget focuses on economic recovery and job creation. Notably, it includes tax measures designed to increase the attractiveness of the French business environment and local companies’ competitiveness.
The Finance Commission of the French Assemblée Nationale (French House) finished its review of the first part of the draft budget and its preliminary amendments on October 8, and Parliamentary debates began on October 12.
The draft budget will move back and forth between the French Senate and the French House before a vote on the final draft, with enactment expected before the end of 2020.
US multinationals should consider the impact of the proposed draft budget with respect to their operations or subsidiaries in France, as well as the potential related US GAAP tax accounting impacts.