A super tax deduction to accelerate the digital and ecological transition and business innovation

UEL POSITIONS AND OPINIONS

UEL and its members strive to be a driving force in supporting a prosperous, inclusive and sustainable economy.  

In this context, the Chamber of Commerce, in collaboration with UEL, has developed a proposal to introduce a new tax measure, in the form of a super deduction, to help companies invest in digital, ecological/environmental transition and in research and development.  

Such a measure is a key element to help achieve the Government’s sustainable development objectives.  

The proposed measure aims to accelerate the digital and environmental transition, to stimulate research and innovation and, more generally, to strengthen the country’s competitiveness and attractiveness. It should also help to further diversify our economy.  

It would take the form of a super tax deduction for expenses incurred in the following three strategic areas:  

• digital transition ;  
• environmental/ecological transition; and  
• research and development.  

Thus, companies undertaking activities in the above areas would be able to benefit from a tax advantage consisting of an additional deduction (the super-deduction) equal to a certain percentage of the related expenditure. This super deduction would be deducted from the taxpayer’s income tax and municipal business tax base, within certain limits. In addition, assets related to the exercise of these three activities would be exempt from wealth tax.  

This measure is in line with the European strategy to enable a people-centred, inclusive, sustainable and prosperous digital future for people and businesses, in line with international and European tax rules.  

This proposal was published by the Chamber of Commerce on 13 July 2022.