#2016-19172017 French Finance Act
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The 2017 Finance Act primarily targets restructuring tax rates and exemptions that impact various sectors including public development aid, corporate taxation, and income tax for individuals. It sets new progressive tax brackets on income above specified thresholds, and introduces numerous tax exemptions such as for Olympic athletes and military personnel in certain conditions. Additionally, it alters how company distributions are taxed to prevent avoidance of wealth tax.
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Key Changes
- Revised income tax brackets with new progressive rates
- Tax exemptions for Olympic athletes and certain military personnel
- Alteration in company distributions taxation to prevent wealth tax avoidance
Obligations
What this law requires
Apply progressive income tax rates to individual income: 14% on income between €9,710-€26,818; 30% on €26,818-€71,898; 41% on €71,898-€152,260; 45% on income above €152,260, effective for income year 2016 and onwards
Reduce income tax by 20% for taxpayers with household income below €20,500 (single persons) or €41,000 (married couples), with threshold adjustments for dependent family members, effective for tax year 2017
Exempt from income tax the rental income from properties rented to shareholders by civil real estate companies (sociétés civiles immobilières) operating under articles L. 443-6-2 to L. 443-6-13 of the Construction and Housing Code
Exempt from income tax performance bonuses paid by the State to French athletes medaled at the 2016 Rio Olympic and Paralympic Games, including payments to their guides
Apply tax provisions to income tax for tax year 2016 and subsequent years, to corporate income tax for fiscal years ending on or after December 31, 2016, and to other fiscal provisions effective January 1, 2017