Other news for january 2022

Corporate tax rate

The year 2022 marks the final stage of the progressive reduction in corporate tax reform. Indeed, set at 33 1/3 % a few years ago, the rate of this tax will be reduced to 25 % from 2022, regardless of the amount of the company’s turnover. As a reminder, in 2021, companies are liable for corporate tax at the standard rate of 26.5 % (compared to 28 % in 2020) or 27.5 % for those whose turnover is equal to or greater than 250 million euros (31 % above €500,000 profit). However, a reduced rate of 15 %, up to €38,120 in profit, applies to small and medium-sized enterprises (SMEs) whose turnover did not exceed 10 million euros.

New amount of the Minimum Wage (SMIC)

In 2022, the minimum wage increases by 0.9 %. An increase that is therefore limited to the legal revaluation without a government “boost”. Its gross hourly rate is therefore €10.57 as of January 1st, 2022, compared to €10.48 until then. As for the gross monthly minimum wage, it increased by €13.65 to €1,603.12 in 2022, for a working time of 35 hours per week.

Deferral of work accident and occupational diseases (AT/MP) increase

Companies with fewer than 20 employees pay, in the case of work accidents and occupational diseases (AT/MP), a contribution whose rate is called “collective”, because calculated according to the loss rate of their sector of activity. The collective rates for each sector are fixed by a ministerial decree. However, companies with at least 10 and fewer than 20 employees may have their AT/MP contribution rate increased when at least one accident at work, resulting in a stoppage of work, has occurred in each of the last three known years. Good news, the application of this increase, which was supposed to enter into force on January 1st, 2022, is finally postponed by one year. In other words, it will only apply to the AT/MP contribution due for periods of employment starting on or after January 1st, 2023.

VAT on petrol

Businesses can, in principle, recover all or part of the VAT on the fuel used in their vehicles. In 2021, they could partially deduct VAT on petrol, up to 80 %, whether used in a private car or a commercial vehicle. As of January 1st, 2022, this deduction is increased to 100 %, but only for commercial vehicles. For passenger cars, the deductible VAT fraction is maintained at 80 %. From now on, the regime applicable to petrol is aligned with that for diesel.