On 11 September 2013 the French Finance Ministry finalized its 2014 finance bill. The tax burden on the wealthiest individuals in particular will continue to rise, despite the Government’s pledge to stabilize taxes next year.
The French Government has already announced a raft of fiscal measures that will enter into force in 2014 and will further raise taxes. The most notable tax initiatives include plans to impose a 75 percent rate of tax, for a limited period of two years, on income in excess of EUR1m (USD1.3m). The levy is to be paid by corporations. It remains unclear, however, as to whether or not the tax will apply to 2013 or 2014 income.
From January 1, 2014, the standard rate of value-added tax (VAT) is set to rise from 19.6 percent currently to 20 percent.
