Fair Share Contribution: Two Methods to Determine the Tax to Be Paid

The 2025 Finance Act introduces the Fair Share Contribution, a new tax on corporate income with flexible calculation methods and specific adjustments for certain sectors.

A report published by Andersen details the provisions of the 2025 Finance Act regarding the implementation of a new fiscal measure: the Fair Share Contribution (FSC). This contribution, integrated into the value-added tax legislation, will apply to certain businesses for a three-year period from July 1, 2025, to June 30, 2028.

According to the report, affected businesses will have the option to choose between two methods to determine their taxable income for the first three quarters. The first option is to take 25% of the taxable income from the previous year. The second option is based on the gross income of the current quarter, after deducting allowable expenses.

For the fourth quarter, the taxable income will be calculated based on the total accounting year of twelve months. The amount of FSC owed for this period will be adjusted based on payments made during the previous three quarters.

Banks and telecommunications companies will benefit from a specific adjustment mechanism. This aims to ensure that the total of their tax and parafiscal contributions — including the FSC, income tax, and CSR — does not exceed 35% of their taxable income from local transactions.

Furthermore, the report specifies that any late payment will incur a penalty of 2.5% on the amount due, along with interest of 0.25% per month or part of a month until settled.

Any business that:

Excluded Companies:

The contribution is calculated on the taxable income of the current year at the following rates:

Non-Banking Companies

Banks