French Constitutional Council approves new tax on high earners

French Constitutional Council approves new tax on high earners
# 30 December 2013 03:41 (UTC +04:00)

Baku-APA. The new tax to 75 percent on high earners exceeding more than one million euros (about 1.38 million U.S. dollars) a year was approved Sunday by the French Constitutional Council, APA reports quoting Xinhua.

Following a meeting of the Constitutional Council on Dec. 28, the sages made Sunday their decisions on the initial Finance Act 2014 and the Amended Finance Act for 2013.

This tax to 75 percent, said " the exceptional solidarity contribution ", applies to companies when they pay to employees an annual salary greater than one million euros. A first version of this tax was annulled by the French Constitutional Council in late 2012.

In a joint statement, the ministers of Economy and Budget, Pierre Moscovici and Bernard Cazeneuve, welcomed the decisions of the Constitutional Council " validate almost all the provisions of the Finance Act 2014 and the Finance Act amendment in 2013" .

"The censorship carried out focus on jumpers or technical amendments but the provisions relating to the economic policy of the Government are validated," they added.

In addition, the cap of the ISF (solidarity tax on wealth) was censored, this provision would allow a taxpayer does not pay the tax over 75 percent of its revenues, which can happen for a taxpayer with substantial assets but low income.

"The Government acknowledges the annulment by the Constitutional Council of the provision taking into account the income of life insurance contracts in euro under the cap of the solidarity tax on wealth (ISF), the principle is not disputed," explained the French ministers in their statement.

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