French Tax Update - French Finance Bills

All Finance Bills have now been adopted by the French Parliament, and very few provisions have been struck down by the French Constitutional Court (Conseil constitutionnel). This first French Tax Update for 2018 outlines the main provisions of these Finance Bills.

For corporations, the main provisions are: (i) the decrease of the corporate income tax rate; (ii) the repeal of the specific 3 percent contribution on distributions; (iii) the simplification of certain conditions of the tax-neutral regime for corporate reorganizations; (iv) the clarification of the deductibility rules applicable to certain foreign withholding taxes; (v) the repeal of the extension of the French financial transactions tax to intraday transactions; and (vi) updated transfer pricing documentation obligations.

For individuals, the main provisions are: (i) the creation of a new 30 percent flat rate for personal income tax applicable to capital gains and dividends; (ii) the repeal of the wealth tax; (iii) the creation of a new wealth tax limited to real estate assets; and (iv) a decrease of the rate of the specific social contributions on awards of free shares.

Please contact Emmanuel de La Rochethulon if you are interested in this issue.

Jones Day publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our "Contact Us" form, which can be found on our website at www.jonesday.com. The mailing of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.