Key Highlights

  • Atlas Arteria outlined proposed 2027 changes to two French tax levies.
  • The proposed TEILD structure could carry a maximum rate of 12.2%.
  • APRR Group incurred EUR 126.7 million of TEILD cost in 2025.
  • The French Budget Bill is due for parliamentary debate after its 1 October presentation.

Atlas Arteria (ASX:ALX) has placed two proposed French tax changes on the radar ahead of the country’s 2027 Budget Bill. The potential measures cover the long-distance transport infrastructure tax, or TEILD, and an extension of the temporary supplemental tax, with final terms still subject to the legislative process.

TEILD Could Move to a Variable Scale

The TEILD has applied since 1 January 2024 at a 4.6% rate for qualifying operators. The proposal would replace that rate with a variable scale linked to profitability and carrying a maximum rate of 12.2%. Expected Revenue from the tax would rise from EUR 600 million under current rules to EUR 1.4 billion under the proposal. The TEILD is not deductible for corporate income tax purposes.

APRR Exposure Remains Unquantified for 2027

The tax applies to APRR and AREA but not ADELAC and A79. In 2025, the TEILD cost the APRR Group EUR 126.7 million. Atlas Arteria has not provided an estimate of the potential 2027 cost under the proposed variable scale. APRR is also continuing legal avenues of recourse regarding the TEILD, with no outcome or timetable detailed in the announcement.

Temporary Supplemental Tax Could Continue

The temporary supplemental tax was introduced in 2025 and extended to 2026. The latest proposal would extend it beyond 2026 at a reduced rate. The levy applies to companies with revenues of EUR 1.5 billion or more. The announcement states that expected revenue from the tax would fall from EUR 7.3 billion under current arrangements to EUR 5 billion under the proposal, but does not state the reduced extension rate.

Budget Process Holds the Next Detail

The Budget Bill is scheduled for presentation on 1 October 2026, followed by parliamentary debate in the coming months. Until that process is completed, the proposed maximum TEILD rate, revenue assumptions and extension of the supplemental tax remain proposals rather than enacted 2027 terms.

Legislation Holds the Key

The Budget Bill and subsequent parliamentary debate will determine the final 2027 tax settings, after which the financial effect on Atlas Arteria’s French interests can be assessed.