This is a controversial measure. To respond to the coronavirus crisis, the majority-right Senate voted on Wednesday to uncap the tax exemption of overtime hours as well as the exemption from social security contributions for these same hours carried out during the state of health emergency, against government opinion.
Within the framework of the examination of the second rectified budget project for 2020, the senators validated an amendment in this direction of the committee of Finances to send "an important signal" and "not to tax the additional work" during the crisis of coronavirus, in the words of the general rapporteur Albéric de Montgolfier (LR).
These tax exemptions and exemption would “be in addition to the exemption of exceptional bonuses paid to employees in the private sector and to public administration agents (already provided), in order to support their purchasing power in the crisis, but also when the economic recovery phase will have come ”, according to the explanatory memorandum to the amendment. "This is the time," launched the leader of the senators LR Bruno Retailleau, citing caregivers or cashiers to whom we must "signify our recognition".
Unfavorable opinion of the Secretary of State
But Secretary of State Olivier Dussopt gave an unfavorable opinion, indicating in particular that the ceiling currently set at 5,000 euros for tax exemption "allows to cover 95% of employees working overtime" and "the 5% not covered are not necessarily among the most fragile ”.
To return to growth, Retailleau argued Wednesday on France Inter that "for a year it will be necessary to agree to work perhaps up to 37 hours per week, that is to say around 1,700 hours a year , with an overtime quota probably around 300 hours' per year.
In the direction of businesses, the senators have provided a tax credit for those that must remain closed beyond May 11, the date of the start of deconfinement. The measure is aimed in particular at the hotel, catering, culture and events sectors.
The ceiling of the “Coluche” system raised
To cope with the precariousness due to the health crisis, the Senate also raised the ceiling of donations for the benefit of associations helping people in difficulty, giving rise to tax deduction.
Within the framework of the second rectified budget project for 2020, the Senate voted an amendment defended by the leader of the group LR Bruno Retailleau, bringing from 537 euros to 1.000 euros the amount of the device "Coluche", which allows to deduct taxes 75% of the sums paid to associations.
"We have to encourage the outpouring of generosity and brotherhood", underlined Mr. Retailleau, for whom this system must in particular concern the Emmaüs association, in difficulty since confinement.
The general rapporteur Albéric de Montgolfier (LR) saw in it “a signal of encouragement in this period”, but the Secretary of State Agnès Pannier-Runacher spoke against this amendment, judging that the level of the device is “already very favorable ”.
An amendment was also adopted proposing a ceiling on the amount of donations in kind made during the health crisis by companies, mainly food, which cannot sell their production, so that they can benefit from the planned tax reduction, up to 60% of the product's cost price.
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