Spontaneous application

2016 Social Solidarity Contributions (C3S tax) could sharply decline?

Primexis Insights
13 September 2016
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As already announced in the “Responsibility and Solidarity Pact” of 2013 (see Primexis website April article written by Didier Hemion), the C3S was scheduled to be gradually eliminated over the next years.


The funding of French social security for 2016, a bill currently under study in France, could provide a significant lowering of the C3S tax for companies. As a reminder, this tax had already been reduced in 2015 because of the introduction of an allowance of 3.25 M Euros.

For the year 2016, i.e. for the tax payable in 2016, the reduction could be credited to EUR 19 million. If so, a good number of companies would be exempt from this tax.

Note that this measure is currently only at the draft stage, but it could also influence the 2015 accounts: indeed the C3S due in 2016 is based on 2015 data and can be accrued in the accounts. It is important that this bill’s progress be closely monitored as it affects social security financing contributions and adjusting provisions might be possible.

We will certainly keep you informed of the progress of this measure and its accounting and tax consequences…


By Laure Barouh
Senior Manager,
International Business Services

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