Law stated as at 01 Oct 2012 |
Before the reform | After the reform | |
Income tax rates | Progressive rates up to 41% (which applies for income above EUR70,830). | Progressive rates up to 45% (which applies for income above EUR150,000). |
Special surtax on high income (3% to 4%) | Applicable. | Remains unchanged. |
Exceptional contribution on very high income | None. | 18% for income above EUR1 million per beneficiary leading to a global taxation of 75% of income above EUR1 million. This measure has been struck down by the CC but could be reintroduced retroactively in the Amended Finance Bill for 2013. |
Taxation of share-options and free shares | Preferential rates depending on the nature of equity. | Application of progressive income tax rates plus a 3% to 4% surtax on high income. Maximum taxation up to 74.5%. |
Investment income (including capital gains) | Taxation up to 39.5%. | Taxation up to 64.5%. However, certain types of investment income can benefit from a 40% rebate and/or from a tax rate of 34.5%. |
Wealth tax | From 0.25% to 0.5%. | From 0.55% to 1.5%. |
Gift and inheritance | Up to 45% between parents and children. Rebate of EUR159,325 per parent and child. Tax brackets and rebates renewable every six years. | Up to 45% between parents and children. Rebate of EUR100,000 per parent and child. Tax brackets and rebates renewable every ten years. |
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T +33 1 47 38 55 00
F +33 1 47 38 55 55
E [email protected]
W www.cms-bfl.com