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France National Assembly votes on major tax reforms and gift exemptions
The French National Assembly has passed several significant fiscal measures as part of the 2027 budget discussions.
In a move to encourage the earlier circulation of savings, deputies approved a measure to ease taxes on intergenerational gifts. If the budget is adopted, the tax-free limit for gifts to children could rise to 200,000 euros over a 15-year period. This follows an amendment that increased the immediate tax-free threshold to 100,000 euros and extended the application period to one year.
Conversely, the Assembly rejected left-wing proposals to introduce a minimum wealth tax on the ultra-rich, inspired by economist Gabriel Zucman. Such a tax would have required the top 1,800 households to pay at least 2% of their net wealth annually. Opponents cited risks to economic innovation and the taxation of illiquid assets.
Additionally, deputies narrowly passed a reform targeting the 'apport-cession' mechanism. This measure aims to prevent wealthy entrepreneurs from using holding companies to indefinitely defer taxes on capital gains from company sales. The government estimates that approximately 34 billion euros in capital gains were being deferred through this method as of late 2023. The final text includes amendments to limit the scope of the taxation and allow for tax payments to be spread over ten years.
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What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Deputies narrowly passed a measure to prevent wealthy entrepreneurs from permanently avoiding taxes on gains from company sales. www.nicematin.com
- [○ 1 SOURCE] According to the government, approximately 34 billion euros in capital gains were under tax deferral by the end of 2023 via the 'apport-cession' mechanism. www.nicematin.com
- [○ 1 SOURCE] The National Assembly rejected left-wing proposals to implement a minimum wealth tax based on the Zucman model. information.tv5monde.com
- [○ 1 SOURCE] The National Assembly approved a tax relief measure for intergenerational cash gifts. www.moneyvox.fr
- [○ 1 SOURCE] If the 2027 budget is adopted, the tax-free gift limit for a child could reach 200,000 euros over a 15-year period. www.moneyvox.fr