The standard rate of corporate income tax (IRC) will fall from 16% to 15% and will apply to taxable income above €250,000, up from €200,000. The reduced rate will fall from 14% to 13% and will cover taxable income up to €200,000, up from €175,000.
Companies will be able to carry forward tax losses indefinitely, as the draft removes the current 17-year limit for both corporate income tax and municipal business tax. The investment tax credit for expenditures on digital transformation and on the ecological and energy transition will also rise from 18% to 21%.
The minister also announced that transferring a business through donation in the direct line or to a partner will be exempt from tax, to ease family succession in SMEs.
A separate bill, submitted to Parliament in July 2026, sets out the tax treatment of employee stock options and creates a dedicated regime for young innovative companies.
The measures still have to pass through Parliament, which is due to vote on the budget in December. They follow measures on talent and investment adopted since 2024. These include a modernised expat regime, an expanded profit-sharing bonus, a new legal framework for carried interest, a partly tax-exempt bonus and rental allowance for young employees, and a tax credit for individuals investing in start-ups.