France: Agricultural sector hit by tax increases


13 December 2017

For farmers and agricultural employees alike, 2018 will be marked by increased General Social Contribution (Contribution Sociale Généralisée, or ‘CSG’) payments, compensated by a reduction in their social security contributions.

Under the Social Security financing bill currently under discussion in Parliament, farmers and farm workers alike will benefit from a reduction in their social security contributions to compensate for a 1.7% increase in CSG, which is proposed to take effect on January 1st.

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Following this increase, CSG will rise to 9.2% – levied on the income from agricultural activities and the wages of farm employees. The share of CSG which is deductible from taxable income amounts to 6.8%, with the not deductible part totalling 2.4%.

Also, as of 1 January 2018, all farmers will see their family benefits contribution drop by 2.15%. This will entail abolition of this contribution for those whose income is less than 110% of the annual ceiling of the Social Security (Pass), or about €43,700 in 2018.

Moreover, some farmers benefit from a 7% exemption from the Amexa contribution rate (sickness and maternity insurance). This exemption would be replaced by a more scalable one. Thus, from 1 January 2018, farmers with an annual income of less than 110% of the Pass would be entitled to a reduction of their Amexa contribution of up to 5%. Given the abolition of certain social contributions levied on the wages of agricultural employees, unemployment insurance and health insurance contributions would cease to be due in 2018.

Author:Bettina Cassegrain, HLB Technical Director and Global Assurance Leader

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