The deputies, who are examining the 2025 state budget, approved on Wednesday the strengthening of the “exit tax”, a tax created in 2011 to curb the tax exile of taxpayers, but rejected a proposal from the left aimed at increasing taxation on capital income.
A large majority associating the left, the RN and the right LR decided to return to the initial version of the “exit tax”, established under Nicolas Sarkozy. This system made it possible to tax the unrealized capital gains of business leaders deciding to transfer their tax domiciliation abroad, unless they kept their shares for at least 15 years after their departure.
In 2018, the deadline was reduced to two years by Emmanuel Macron, in the name of France's attractiveness for investors, but the Assembly therefore voted to reduce it to 15 years. It is about “ensure that people cannot leave France with their pockets full of shares, without paying anything, and then go and receive the added value elsewhere”, summarized Aurélien Le Coq (LFI). Only elected officials from the “Together for the Republic” group, Horizons and Modem opposed it.
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The RN joins its voices to those of the macronie and the right
The Assembly, however, rejected several amendments tabled by the left, which aimed to increase the “flat tax” on capital income. The RN joined its voices to those of the macronie and the right to oppose it, in the name of the defense of “small carriers” and “business leaders”.
This tax was introduced in 2018, after the abolition of the ISF by Emmanuel Macron, with the objective of pushing the wealthiest taxpayers to invest in the economy. Last week, the Finance Committee decided to raise its rate from 30 to 33%, a provision adopted thanks to the benevolent abstention of the RN.
In session in the hemicycle, the Assembly however rejected all attempts by the left to increase the tax, the RN having this time chosen to oppose them. “Small carriers, business leaders, […] felt unfairly affected by this measure,” explained Jean-Philippe Tanguy. “We did not want to accumulate taxes which give the impression that it is the opposition who are taxing, while the government is making 30 billion in taxes,” he explained to AFP after the vote.
The RN, “terrified” by the prospect of a 49-3, wanted “save the Barnier government”commented LFI David Guiraud in the hemicycle. “You are therefore more interested in your political survival than in the taxation of higher incomes and in tax justice”, he accused.
Restoration of the half tax share of widows and widowers
MEPs also adopted two amendments to better combat so-called “CumCum” practices, consisting of evading taxation on dividends by temporarily entrusting one's shares to an intermediary abroad.
In terms of housing, an amendment was approved which tightens the conditions for exemption from the capital gains tax owed by an owner who resells his main residence. To be exempt, you will now have to have lived in your home for five years, instead of six months until now, in order to discourage “speculative somersaults”, which contribute to the rise in real estate prices.
The deputies also decided to better supervise the operations of “cut sales” of buildings, by approving stricter taxation of operations of this type when they generate a capital gain greater than 2%.
Finally the Assembly reestablished the “half tax share of widows and widowers”, an advantage removed in 2014, under the presidency of François Hollande. All widows and widowers who have raised at least one child should benefit from it again, and thus pay less taxes.
The measure, which could concern two million taxpayers and cost a billion euros, however has little chance of being maintained in the final text by the government when it triggers article 49-3, observed to the AFP one of the deputies who supported it, Anne Le Hénanff (Horizons).
