The 2026 Finance Bill has been formally submitted to the Council of Ministers and subsequently presented to the National Assembly. Following the rejection of two motions of confidence proposed by an opposition party, parliamentary discussions are now underway. Below is a summary of the principal measures pertaining to corporate taxation.
Abolition of the CVAE in 2028 instead of 2030
The corporate value-added contribution (CVAE), originally set for gradual abolition by 2027, will now be phased out in 2028 and 2029, with complete abolition scheduled for 2030. The maximum tax rate of 0.28% applicable in 2024 will remain in place throughout 2026 and 2027, and is planned to decrease to 0.19% in 2028 and 0.09% in 2029.
Note: For 2025, an additional contribution has been made to address the reduction in the CVAE that resulted from the late adoption of the budget.
The draft finance bill proposes to reverse the recent declining trend by advancing the timeline for CVAE abolition by two years. Under the current plan, the gradual phase-out of the CVAE could resume in 2026, with the maximum rate decreasing from 0.28% to 0.19%, and subsequently to 0.09% in 2027. The CVAE is scheduled for complete abolition in 2028, rather than the previously intended date of 2030.
Lowering of VAT exemption thresholds
As of March 1, 2025, the government’s planned reduction of VAT exemption thresholds to €25,000 in turnover, applicable to all activities, has been postponed until December 31, 2025.
The draft finance bill proposes establishing a general threshold of €37,500, while retaining a distinct threshold of €25,000 for real estate work, effective as of January 1, 2026.
Extension of the exceptional contribution for large companies
A special profit contribution has been levied on major corporations for 2025, set at a rate of 20.6% for entities with turnover between €1 billion and €3 billion, and at 41.2% for those whose turnover exceeds €3 billion.
According to the draft finance bill, this contribution is set to continue in 2026 with a 50% reduction in the applicable rate: 10.3% for turnover between €1 billion and €3 billion, and 20.6% for turnover above €3 billion.
Heavier penalties for electronic invoicing
The draft finance bill introduces a penalty system for companies that do not use an approved platform for receiving electronic invoices. The proposed penalties include a €500 fine if a formal notice is not addressed within three months, followed by a €1,000 fine for continued non-compliance within the same period. An additional €1,000 fine applies for every subsequent three-month period without compliance after formal notice.
Additionally, if the company does not issue electronic invoices, a fine of €50 per invoice will apply (replacing the previous amount of €15). The total fines will remain limited to a maximum of €15,000 per year.
If the company does not fulfill its obligation to provide transaction data or payment data, a fine of €500 per transmission will be imposed, which is an increase from the previous amount of €250. The maximum annual fine for each obligation remains €15,000.
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