Unveiled at the Senate hearing: Bernard Arnault's astonishing disclosure of taxes, salaries, and other significant sums
On the eve of the Louis Vuitton fashion show, Bernard Arnault, France's wealthiest person and CEO of LVMH, appeared before the Senate's Commission of Inquiry on public aid to companies. The purpose of the hearing was to demonstrate that LVMH is a "patriotic" company, generating substantial tax contributions to France.
The luxury group, with a turnover of nearly 85 billion euros in 2024, paid almost 6 billion euros in taxes last year, according to Arnault. More than half of this tax contribution was in France. LVMH will also pay an additional corporate tax charge of 700 million euros this year due to an exceptional fiscal contribution requested from large companies.
LVMH employs around 44,000 people directly, and indirectly, this creates approximately 160,000 jobs among subcontractors. The salaries of LVMH employees are considered competitive, with only 4% earning less than 2,250 euros per month. LVMH received 275 million euros in various forms of public aid in 2023, to be compared with a tax contribution of 3.8 billion euros.
The Senate committee was also interested in LVMH's use of tax exemption mechanisms and its benefits from the tax refund system for non-European tourists. Stéphane Bianchi, the group's CEO, revealed that this system represents between 1.4 and 1.7 billion euros of the 8 billion euros generated in France, although it does not provide direct income for the group. The beneficial effect of this system on the attractiveness of the country is defended by LVMH, although its legitimacy is now under review by the senators.
According to a financial transactions tax rate of 0.3%, LVMH, like other major French companies with a market capitalization exceeding EUR 1 billion, is subject to an additional tax in France. The final report of the senators' assessment is expected on July 8.
- The hearing with Bernard Arnault, CEO of LVMH, addressed the company's "patriotic" nature, as it has made significant contributions to French "personal-finance" by paying almost 6 billion euros in taxes last year.
- LVMH, a major player in the "business" world with a turnover of nearly 85 billion euros, has employed around 44,000 people directly, contributing to the creation of 160,000 jobs among subcontractors.
- The Senate's Commission of Inquiry is reviewing LVMH's use of tax exemption mechanisms and benefits from the tax refund system for non-European tourists, which accounts for between 1.4 and 1.7 billion euros of the 8 billion euros generated in France.
- Stéphane Bianchi, LVMH's CEO, testified that the group is also subject to an additional "finance" tax in France, as it has a market capitalization exceeding EUR 1 billion, and the final report of the senators' assessment is expected on July 8.
