In Depth | Management Packages, what’s new following the 2025 budget vote?
The vote on the budget for 2025 includes two sets of measures affecting management packages: the Finance Act for 2025, which reforms their tax and social security regime, and the Social Security Financing Act for 2025 raises the rate of the employer’s contribution payable in the case of free share grants to 30%.
While this reform secures the tax and social framework for management packages, it significantly increases the tax burden on gains, which could impact their structuring in future LBO transactions. Applicable to disposals after the law’s promulgation, it also concerns existing packages that have not yet been disposed of.
Principle of taxation according to the rules of common law for salaries and wages, derogatory regime of taxation according to the regime for capital gains on securities, practical questions and remaining grey areas …
Read Benoît Gréteau and Charlotte Bittermann’s full analysis down below.
