Parliament has approved the draft revised Finance Act for 1995. In particular, the Act provides for a temporary levy of 10 % to be added to corporate income tax due for tax years ending on or after January 1, 1995. An increase of 10 % to the wealth tax rate will also be levied for 1995 and subsequent years. Moreover, the scope of the company social support contributions regime (ORGANIC) is widened to include economic interest groupings and European economic interest groupings, partnerships and financial institutions other than joint stock companies (e.g. mutual insurance companies, saving banks, Credit Agricole, etc. ). The rate of the levy, applicable to turnover, and stipulated in Article L 651-5 of the Social Security Code, is increased to 0,13 % for 1995. To offset the widening of the scope of liability to ORGANIC, the revised Finance Act includes a certain number of provisions which tend to limit double taxation due to intragroup transactions.
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