Taj News Alert : French Prime minister announces 30% flat tax on income capital and ISF reform for 2018
French Prime Minister Edouard Philippe announced a 11-billion euros reduction of tax in 2018 to trigger a “tax relief”. In this context, the flat taxation of capital income, “ISF” reform and the first step of the housing tax reform will be implemented in 2018.
Paris, July 12th, 2017,
EEdouard Philippe declared that the 30% flat tax on income savings will be executed in 2018. In the context of this reform, the Prime Minister specified that tax-exempted products such as the “Livret A” will remain exempted and that life insurance will keep its current tax regime. Only new investment flows beyond 150 000 euros will be affected.
Edouard Philippe also confirmed that the first step of the housing tax reform will be implemented in 2018. He also announced that the tax on wealth reform (ISF) will be fully executed in 2018. Indeed, the creation of a tax on Real Estate fortune aiming to exempt all movable patrimony is planned but the thresholds and rates will remain the same and the 30% abatement on primary residence will be maintained.
Taj’s experts, a Deloitte network company, offer to comment with you the repercussions of these reforms.
- What will be the impact of a 30% unique flat-rate tax on capital income?
- Will the ISF reform be effective to foster investment?
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