France - French Parliament adopts new measures that raise individual tax burdens

Global Watch ()

Globally mobile individuals and their employers may likely face a higher tax burden in France. The second Amended Finance Bill for 2012 was adopted by the French Parliament on July 31, 2012 and it includes various provisions affecting individuals, the principal ones of which are set out below. Several other measures affecting individuals are expected before the end of the year with the 2013 Budget discussion due to start in late September.

The party in opposition has objected to the constitutionality of some of the measures adopted in July. The measures are expected to be examined by the Constitutional Court (Conseil Constitutionnel) on August 9, 2012. Measures regarding individual taxation that will be examined include the exceptional wealth tax contribution for 2012 and the suppression of the income tax and social security exemption of additional worked hours (described below).