French newly elected president has committed to reduce the corporate tax rate from current rate of 33.3% to 25% with the aim to bring it in line with the EU average within five years.
The tax credit on research, innovation and the start-up status would be kept. However, it has not yet been clarified whether the scope or rate of those “special schemes” would be reduced.
Also, dividends, capital gains on securities and interest are expected to be taxed around at flat rate of 30% from January 2018, including social contributions, which are currently taxed at the marginal rate of 63.5% (45% with respect to income tax, 4% with respect to high income tax and 15.5% with respect to social contributions).
Wealth tax, known in France as ISF is largely perceived as a competitive disadvantage by individuals, businesses and investors in comparison to other European countries. It is therefore planned to have it abolished
The wealth tax also known as ISF of France is highly considered as disadvantage by individuals, businesses and investors compared to other European countries and therefore it is planned to be abolished.
However, ISF would be replaced property wealth tax (IFI) or property income tax (IRI) and this would not include the market value of securities held in companies.
