2027 Budget: the surcharge causing concern amongst business channels

France could extend its surcharge on large companies in 2027. For Swiss companies, this may seem like a distant concern: it relates to French corporation tax and targets groups that are much larger than most Swiss SMEs. However, when a major client, supplier, distributor or contractor sees their tax burden increase, the effect can be passed on through prices, payment terms, procurement policies and investment budgets.

According to Econostrum, citing information from Les Échos, the extension of this levy is one of the options being considered for the 2027 French budget. The draft finance bill is due to be presented to the Council of Ministers on 30 September, and the decisions may still change. For a Swiss SME operating in the French market or integrated into a European value chain, the challenge is therefore not to calculate this surcharge as if it were directly applicable to them, but to anticipate the possible reactions of their partners.

A French levy targeting turnover, not profit

The surcharge in question was introduced on an exceptional basis in the 2025 budget, then extended into 2026, according to Econostrum. It may now be retained for a third year. The key point, in order to understand its economic impact, is its eligibility criterion: the measure does not target companies based on their profit levels, but on their turnover.

According to the source, this year the levy applies to companies subject to corporation tax with a turnover of at least 1.5 billion euros. This threshold is reported to have been raised compared with 2025 in order to exclude medium-sized companies. Around 300 companies are expected to be affected this year.

The calculation does not involve levying a percentage of turnover. The levy is calculated on the basis of the corporation tax due. According to Econostrum, the rate is 20.6 per cent where turnover is between €1.5 billion and less than €3 billion, and 41.2 per cent where turnover is €3 billion or more. Smoothing mechanisms are in place around the thresholds to avoid too abrupt a change in the event of only slightly exceeding a threshold.

This distinction is crucial for SME directors. A tax based on turnover and a surcharge calculated on the tax due do not have the same financial impact. In the second case, the impact depends in particular on the tax base, the applicable tax rules and the group’s specific circumstances. However, in both cases, an anticipated increase in the tax burden can influence the way a large company manages its costs.

Why a Swiss SME may be affected without being liable

A Swiss company that is not subject to French corporation tax does not, for that reason alone, fall directly within the scope of this levy. The practical issue lies elsewhere: what decisions will the large groups concerned take to preserve their margins, fund their tax liabilities and reassure their shareholders or governing bodies?

In a commercial relationship, tax is never completely isolated from the rest of the business model. If a major client believes that its tax burden is increasing in the long term, it may seek to offset this through operational savings. This may result in increased pressure on purchase prices, the renegotiation of contracts, stricter listing conditions, the centralisation of procurement or the postponement of certain projects.

For a Swiss SME that is an exporter, subcontractor, IT service provider, consultancy firm, industrial supplier or specialist distributor, the risk is therefore indirect but very real. A rise in taxation for a French partner may lead to discussions about prices, volumes, end-of-year discounts or payment terms. The fiduciary, for its part, must help translate this uncertainty into cash flow and margin scenarios, rather than simply commenting on current events.

The issue also warrants the attention of Swiss companies belonging to a group with a presence in France. Depending on the legal structure, intra-group cash flows, re-invoicing, royalties, the provision of services or transfer pricing policies may need to be monitored with greater scrutiny when the tax burden increases. This does not mean automatically concluding that there will be an impact, but rather reviewing contracts, documentation and the economic consistency of these flows with the relevant advisers.

Prices, budgets and investments: the channels of transmission

For an SME director, the right question is not simply: ‘Am I liable for this surcharge?’ It is also: “Are my strategic customers or suppliers affected, and how might they react?” A large company can absorb an additional burden, pass it on in part, cut certain costs, defer investments or review its geographical priorities. Each choice has different implications for business partners.

On the sales side, a Swiss SME that generates a significant proportion of its turnover from large French groups should assess the strength of its order book. Its clients’ 2027 budgets may incorporate more cautious assumptions. Multi-year contracts, indexation clauses, termination conditions and volume commitments then become key factors. When margins are already tight, a request for a price reduction may be enough to make a contract less profitable.

On the procurement side, the impact may take a different form. If a large French supplier is affected by the surcharge, it may adjust its prices, review its discounts or prioritise its most profitable customers. A Swiss SME reliant on a single supplier must therefore monitor its supply risks and, where possible, consider alternatives. A partner’s tax situation can thus become a risk management issue, on a par with exchange rates, energy, logistics or interest rates.

Investment is another area of concern. Econostrum points out that Medef opposes an extension of the scheme, fearing it could affect large corporations’ investment and recruitment decisions. For a Swiss SME, this could mean fewer contracts relating to site expansions, fewer transformation projects or delayed calls for tenders. Companies in the service, engineering, construction, maintenance, training or digitalisation sectors may need to pay particular attention to these signals.

The role of the fiduciary: turning tax news into scenarios

Faced with a measure still under discussion, the answer is not to immediately overhaul one’s entire strategy. The right approach is to identify one’s exposure. Which French clients account for a significant proportion of turnover? Are they large groups potentially subject to the surcharge? Do current contracts allow for rapid renegotiation? Do prices include a sufficient safety margin? Have payment terms already been extended?

The accountancy firm can support this process by combining cost accounting, cash flow monitoring and basic contract analysis. An SME should be able to determine, by client or by segment, what margin it retains after salaries, social security contributions, travel expenses, subcontracting costs, exchange rate fluctuations and administrative costs. Without this overview, commercial pressure from a major client may be accepted too hastily, at the risk of turning a prestigious relationship into a low-profit activity.

From a budgeting perspective, it is prudent to factor in several scenarios for the financial year in question: stable volumes, price reductions demanded by certain clients, postponed orders, or, conversely, the opportunity to replace a supplier deemed too costly. These scenarios should not be alarmist; they serve to gauge the company’s resilience. A cash flow forecast, updated regularly, makes it possible to assess whether a temporary drop in margins is manageable or whether it threatens current commitments.

Swiss companies operating in France must also coordinate their tax analyses. VAT, the possible existence of a permanent establishment, the classification of services, the flow of goods and reporting obligations all depend on specific facts. The surcharge on large companies does not replace these traditional considerations: it is an additional factor to be taken into account. Before making any decision, it is advisable to review the situation with a specialist familiar with the relevant French and Swiss regulations.

A French budgetary debate to follow through to the final decisions

The pressure on French public finances explains the debate. Econostrum reports that the French public deficit reached 152.5 billion euros in 2025, or 5.1 per cent of GDP, and that public debt stood at 3,460.5 billion euros, or 115.7 per cent of GDP. The surcharge represents a significant source of revenue: its expected yield was €8 billion when it was introduced for 2025. For 2026, the government initially forecast €4 billion with rates halved, but the scheme adopted following the budget debates raises the expected revenue to €7.3 billion, according to the same source.

These figures show why the measure may remain a topic of discussion: it generates revenue for the state quickly and targets a limited number of players. But they also explain the criticism from business circles, which fear that a one-off tax could become a recurring one. For Swiss companies, the key message is this: a national tax measure can alter the business environment beyond national borders.

Nothing is set in stone until the draft Finance Bill is presented. Thresholds, rates, duration and terms may still change. A Swiss SME would therefore be ill-advised to overreact. However, it would be wise to ask the right questions now: concentration of the customer portfolio, dependence on a few large groups, pricing clauses, margin resilience and liquidity requirements. In an interconnected economy, the tax policies of a major neighbour can sometimes become a very local issue: one that affects the next round of trade negotiations, the next budget and the next investment decision.