#2017-758 DC2018 Finance Law
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The 2018 Finance Law in France introduces significant changes to the fiscal framework, including the establishment of a flat tax rate on certain capital income and the abolition of the wealth tax, replacing it with a property wealth tax. The law aims to reform local taxation, particularly through modifications to residential property tax, allowing for a phased tax relief for a majority of residents. Additionally, the law imposes new obligations on community taxation and local government resources.
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Key Changes
- Introduction of a flat tax rate on capital income at 12.8% and 30% including social contributions.
- Abolition of the wealth tax and establishment of a property wealth tax starting from January 1, 2018.
- Phased tax relief on residential property tax benefiting 80% of taxpayers by 2020.
Obligations
What this law requires
Establish a flat tax rate on certain capital income as defined in the 2018 Finance Law
Abolish the wealth tax (impôt de solidarité sur la fortune) and replace it with a property wealth tax
Implement phased tax relief for residential property tax for a majority of residents
Reform local taxation framework through modifications to residential property tax administration
Impose new obligations on community taxation and adjust local government resources accordingly