The announcement of an exceptional surtax on large corporations’ profits, integrated into the 2025 budget plan, continues to elicit reactions from the leaders of major French firms. Patrick Pouyanné, CEO of TotalEnergies, expressed his agreement with Bernard Arnault, founder and head of LVMH, who criticized this taxation as a penalty on “Made in France” businesses.
A surtax targeting 440 companies
The French government plans to raise 8 billion euros through this exceptional contribution, which will apply to companies generating over one billion euros in revenue in France. Approximately 440 companies will be affected by this measure, which will, however, only last for one year. Bernard Arnault recently criticized this decision, arguing that it disproportionately targets companies with productive activities in France.
Patrick Pouyanné echoed this sentiment, stating, “It is a surtax on people who operate in France, who generate profits in France. That is the reality of what will happen.” He thus supported Bernard Arnault’s position, calling his analysis “common sense.”
A significant impact for LVMH
For LVMH, the world’s leading luxury brand, the surtax is estimated to cost between 700 and 800 million euros. The group, whose revenue reached 84.7 billion euros in 2024, is among the most heavily impacted businesses.
Patrick Pouyanné pointed out that TotalEnergies should, however, be exempt from this surtax due to the decline in its refining activity in France in 2024. This decrease in domestic operations is expected to nullify or significantly reduce the company’s corporate tax liabilities in France.
Differentiated taxation for TotalEnergies
Although TotalEnergies will avoid the surtax on profits, the company will still be subject to another fiscal measure—the tax on share buybacks—outlined in the budget plan. According to Patrick Pouyanné, this tax will cost his company between 100 and 150 million euros.
He also emphasized that TotalEnergies would continue to contribute significantly to public finances, paying over 2 billion euros in various taxes and levies in 2024. This amount includes all forms of taxes, employer social security contributions, and withholding taxes on dividends paid to foreign shareholders.
A contested measure in the business sector
The exceptional surtax remains a point of contention within the business community. While the government justifies it as necessary for reducing the public deficit, some executives view it as a potential deterrent to the country’s economic attractiveness.
The large corporations affected will now have to adjust their financial management in response to this new fiscal burden, while the government will need to assess the long-term effects of this measure on investment and economic activity.
