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France — Planned business tax would penalise temporary employment agencies

23 October 2009

In a meeting yesterday between the Association of Temporary Employment Agencies (PRISME) and Marc Laffineur MP, co-author of the planned amendment paper to business tax (taxe professionnelle), the association has expressed concern about the impact the planned taxation will have on small and medium-sized temporary employment agencies, Le Figaro reports.

The current business tax is deemed to be unfair and to be replaced with two other forms of tax, one of which is based on revenues. The new system will have to take the salaries temporary employment agencies pay into account. Salaries and social security payments account for 85% of temporary staffing agencies' turnover.

So far businesses with a turnover of less than 7.6 million Euro were exempt from business tax. The proposed new tax is planned to start at a turnover of 2 million Euro and would charge companies with a turnover of less than 7.6 million Euro an extra 1.5% of their added value.

PRISME believe that this would multiply tax for smaller temporary staffing agencies by up to a factor of 12.
PRISME says in a statement that "to increase taxes on labour at a time when they should be reduced in order to stimulate the market means that members of Parliament are ignoring our economic reality. To multiply the tax for an entire industry sector also destroys the 'social contract' we have together."

Marc Laffineur is considering to amend the new legislation which will be discussed in Parliament today.



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