The final bill was passed on February 6, and these are the key measures for individuals.

First, good news for all taxpayers: the tax scale has been raised. Thus, the tranches of the Income Tax (IR) scale, the thresholds and the limits associated with it, increase by 1.8%. This measure is intended to compensate for inflation in 2024. This will allow 17.6 million households to see their equivalent income tax reduced and prevent about 600,000 French from starting to pay this tax.

Second, a differential contribution on high incomes is adopted. This contribution aims to ensure a minimum taxation of 20% of the highest income (more than € 250,000 alone or € 500,000 in pairs), with a discount to mitigate threshold effects. In fact, this measure affects only a very small percentage of French taxpayers, and the minimum taxation is still to be defined by the legislator.

Lastly, about the other notable measures, we can note the strengthening of the malus on polluting vehicles with an increase in the ceiling to € 70,000 and a decrease in the trigger threshold for C02 emissions. The reduced VAT rate of 5.5% extended to renewable energy heat networks. Donations to associations that support victims of domestic violence become eligible for tax reduction, always within the limit of € 1,000. The solidarity tax on airline tickets (TBSA), known as the «Chirac tax» increases for both economy and business class. Finally, the tax exemption for tips is extended to 2025.

If you would like more details on these different measures, please contact us at contact@finankap.com.

Finankap Group, always by your side to give life to your desires.