Update to the note published on 14 November 2018, taking into account new information provided by the Ministry of Finance: sector figures unchanged, estimates of pre-tax profit rates of 5.1% and 10.1% updated. 

The CICE will be phased out as of 1 January 2019 and replaced by a reduction in URSSAF employer contributions (-6 points), supplemented by an increase in the «Fillon» relief measures scheduled for 2019.

In return for this reduction in social security contributions, which appears to exceed the proceeds of the CICE, most companies will see their tax burden increase in 2019 as a result of this reform.

With this educational note, the CNR reviews the terms and conditions for applying these government measures and provides an estimate of their overall impact, including the impact on corporation tax.