France: Agricultural sector hit by tax increases


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.

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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