Amending Finance Bill No. 4215 for 2021 has been submitted in the French National Assembly. As previously reported, one of the key measures of the bill is enhanced loss carryback relief for impacted companies based on recent recommendations from the European Commission. The measure provides that losses recorded for tax years ending from 30 June 2020 to 30 June 2021 may be carried back up to three years instead of the standard one year. Further, the standard EUR 1 million carryback limit does not apply. Taxpayers wishing to claim the enhanced loss carryback relief may do so up to the tax return deadline for the year ending 30 June 2021 (generally 30 September 2021).

The bill also provides extensions and clarification of certain other support measures for COVID-19. This includes the renewal of the tax and social security contributions exemption for bonuses paid between 1 June 2021 and 31 March 2022 to employees whose salary is lower than three times the gross minimum wage (the so-called Macron purchasing power bonus). This also includes the extension of social security contribution payment assistance for companies with less than 250 employees in particular affective sectors, which includes assistance equal to up to 15% of total payroll expenses for June to August 2021.