Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/2/2012

France - Follow-up descriptions of corporate, individual tax proposals 

October 2: The proposed corporate and individual tax measures—unveiled on 29 September 2012 as the Draft Finance Act for 2013 (Loi de Finances 2013)—aim at reducing the deficit by raising tax revenue, with a focus on large corporate taxpayers and individuals who are considered to be wealthy.

The draft Finance Act was presented by the government to the Parliament, where it will be discussed in coming weeks. Certain provision will be effective for FY 2012 (i.e., measures may have different effective dates).

Corporate tax measures

Among the corporate tax proposals (and effective dates) are:


  • Changes to the tax loss carryforward rules (FYs closed as from 31 December 2012)
  • Restriction of the deductibility of interest (FYs closed as from 31 December 2012)
  • Increased taxation of capital gains (FYs closed as from 31 December 2012)
  • Increased corporate income tax installment payments for large taxpayers
  • Measures related to the R&D tax credit
  • Increased taxation of capital gains on disposal of substantial shareholdings by foreign corporations (disposals as from 1 January 2013)

Individual tax measures

Individual taxpayers would be subject to the introduction of:


  • An increased marginal rate bracket of 45% for individual income exceeding €150,000
  • An additional “exception” contribution (i.e., an overall tax rate of 75%) for “professional” income over €1 million
  • Repeal of the flat-rate tax on dividends and interest
  • A change in the taxation of capital gains realized on shareholdings
  • A change in the taxation of stock options and “free shares” and of carried interest
  • A wealth tax (from 0.5% to 1.5%) for individuals whose net assets have a value of €1,310,000 or more
  • Changes to the real estate capital gains tax regime
  • Limited tax allowances for certain investments

Read an October 2012 report [PDF 193 KB] prepared by Fidal: Draft Finance Act for 2013


* FIDAL is an independent legal entity that is separate from KPMG International and its member firms.




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