Global Daily Tax News, France Guides On Extended Exceptional Tax On Large Company Profits, (Aug 18, 2026)

France's tax authority has released guidance on the extension to the exceptional tax on the profits of large companies (CEBGE) and the increase to the threshold for its application.

The update provides guidance on provisions included in the 2026 Finance Bill to extend the levy by one year. While, during its first year, the levy applied to consolidated groups or standalone companies with turnover of at least EUR1bn, under the one-year extension, in the second year, it applies to taxpayers with turnover exceeding EUR1.5bn for the second financial year ending on or after December 31, 2025.

For this second year, the rate is 20.6 percent of the corporate income tax due for groups with a turnover below EUR3bn, and 41.2 percent for turnover exceeding this threshold.

It is levied on the average corporate income tax liability for the current and previous fiscal year, after the deduction of losses and long-term capital losses carried forward and the application of exemptions or allowances provided for by special regimes.

Specific rules apply to reduce the burden for companies whose turnover only marginally exceeds one of the two thresholds, to prevent cliff-edges.