Tax Measures
Adopted the 4th July by the French government, the tax mesures of the second corrective finance bill for 2012 are presented in a press pack available on the website of the Ministry of Economy and Finance.

Please find hereafter the essence of tax reforms announced in this issue and awaiting discussion by Parliament:

• Application of the progressive scale in 2011 for the calculation of ISF 2012 (Property tax). A wealth tax would be charged to parties indebted to this tax in 2012;
  
  
• Personal tax allowance directly online up to 100 000 € and a fiscal recall time for donations raised to 15 years earlier;
  
  
• Social security contributions at 15.5% on real estate income of nonresidents;
  
  
• Employers' social package increased from 8% to 20% on employee savings;
  
  
• Increased taxation of stock options and free share distributions (employer contribution of 20% and 10% contribution to the beneficiary);
  
  
• Advance payment of exceptional contributions to corporate income tax of 5%;
  
  
• Creation of a contribution of 3% on the amount of paid dividends;
  
  
• Non-deductible debt waivers of a financial nature;
  
  
• Contribution to recapitalize a subsidiary. The contribution will be taxable as soon as it fills losses of the beneficiary company and is paid by securities whose real value is less than the amount of the contribution;
  
  
• Transfer of deficits (tightening of the conditions to obtain approval authorizing the transfer of losses in case of restructuring; determination of objective criteria to decline the deficits of companies that change their activity);
  
  
• Non-cumulative regime daughter mother and the deduction of losses incurred on the sale of securities;
  
  
• Transfer of profits to countries with privileged taxation (the company must now prove that the subsidiaries operating abroad have a real economic activity);
  
  
• Repeal of the VAT so-called "social";
  
  
• Restoring the reduced VAT rate to 5.5% on books, whatever their support (electronic, paper...) would be;
  
  
• Exceptional contribution of 4% on the value of stocks of petroleum products;
  
  
• Doubling of the tax on financial transactions;
  
  
• Exceptional contribution due from certain credit institutions. It is proposed to establish, within 2012, an additional contribution of an exceptional amount of the same systemic risk tax paid in 2012.

Press Release Ministry of Finance, July 4, 2012