To cope with the economic difficulties of companies linked to the health crisis, the government had taken the decision to postpone the tax and social charges of the latter for the year 2020. A postponement which for 2020 represents 50 billion euros.
25 billion tax charges deferred in 2020
The Prime Minister, Jean Castex, announced Wednesday March 10, 2021, that the decision to postpone the tax and social charges of companies in 2020, represented 50 billion euros. A sum to which are added 8 billion euros of social security tax exemptions. Before the Senate, Jean Castex specified that in ” tax plan, nearly 25 billion euros were not taken from companies, whether it concerns deferrals or accelerated debt repayments “.
The cost of deferral of tax deadlines represents according to the scoreboard of the Ministry of the Economy, 3.4 billion euros. The mechanism put in place in the third amending finance law, which was adopted in the summer of 2020, has allowed companies to take advantage of the “carry-back”. This allowed companies to retroactively deduct their 2020 deficit from their 2019 profits and get a tax refund.
25 billion social charges deferred in 2020
Regarding the deferral of social charges, Jean Castex believes that they are ” nearly 12 billion euros which were reported by the Urssafs and which concerned nearly 900,000 companies, and I add 13 billion euros for self-employed workers “. In addition to these deferrals of social charges, “ nearly 8 billion euros in social charges which were canceled in 2020 alone “.
The Prime Minister reassures, it is not a question of a gift but of postponements which will have to be reimbursed. ” The repayments of this tax and social debt will of course be adapted to the situation of each company. “Assured Jean Castex, adding” we have long settlement plans in place of up to three years “.