A new tax landscape is emerging with the main measures of the draft finance law for 2018, voted on by meps this Tuesday, November 21, at the first reading. Other devices, such as the increase of the CSG and the abolition of employee contributions in the private sector, are included in the draft law of financing social Security (PLFSS).
1. Housing tax
the reform of The property tax will commence with an initial drop of 30%, or 3 billion euros. Nearly 80% of homes currently subject to this tax, or more than 17 million households, will be affected.
Two similar steps will follow in 2019 and 2020, with reductions of 6.6 billion euros and 10.1 billion, leading to the elimination of this tax for the households concerned. The government has promised to compensate “for the euro near” the loss of revenue for the municipalities.
2. “Flat tax”
A collection single flat-rate (PFU) of 30%, sometimes referred to as the “flat tax” will be introduced on income from movable property, with the exception of the livret A, the PEA (share savings) and life insurance contracts of less than 150,000 euros and kept more than eight years.
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This reform, aimed at simplifying the taxation of capital and to bring it closer to the level of other european countries, will cost 1.3 billion euros in 2018.
The reduction of tax on income (“Madelin”) for investment in SMES rose from 18% to 25% with a ceiling of 10,000 euros.
3. Wealth tax
The ISF (impôt de solidarité sur la fortune), which now covers 351.000 households whose wealth exceeds 1.3 million euros, will be transformed into a “tax on the real estate asset” (IFIS), so as to encourage the savers and the wealthy to invest in companies. This reform is expected to result in a shortfall of about 3.2 billion euros to the State. In 2016, the ISF has reported nearly $ 5 billion.
The deputies have increased the taxation of some luxury goods. They have taxed the owners of large pleasure craft, increased the tax on the transfer of precious metals and created an additional fee for the sports cars. But not everything is expected to bring in between 40 and 50 million euros.
4. Housing: Pinel, and the PTZ extended but narrowed
The tax benefit “Pinel” granted to individuals purchasing a home for the rent, the period is extended to four years, but reduced to the taut areas. In other areas (B2 and C), the housing must be acquired before the end of 2018. Of, even the interest-free loan (PTZ) in the nine will only be maintained for two years in zone B2 and C.
5. Energy tax
The internal tax on the consumption of energy products (TICPE) will increase by 2.6 cents per litre of diesel each year for four years, to align with the taxation of gasoline. With the planned increase of the carbon tax, the diesel is expected to bring in 3.7 billion euros more to the State in 2018.
The tax credit energy transition (ISCED) is reduced and even eliminated where the environmental benefit is low.
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6. Corporate tax
The government confirmed the reduction decided by the former majority in 2018, with a reduced rate of 28% up to 500.000 euros and a normal rate maintained at 33.3 percent beyond. The drop should then continue throughout the five year period, with levels uniform for all companies: 31% in 2019, and 28% in 2020, and 26.5% in 2021 and 25% by 2022.
This decrease will reduce from € 11 billion of the tax burden on enterprises by 2022.
the transformation of The CICE (tax Credit for competitiveness and employment) in lower employer contributions will occur in 2019, but it will be preceded by 2018 a reduction of one percentage point in the rates, from 7% to 6% of wages up to 2.5 times the Minimum wage.
7. Fraud –
deputies have stepped up the sanctions against tax evaders, the tax office with aggravating circumstances, with a mandatory additional penalty of deprivation of civic rights, except the “special motivation of the judge”.
To meet its european commitments to reduce the public deficit (to 2.8% of GDP in 2018 after 2.9% projected in 2017), the government wants to make 15 billion euros of savings compared to the increase in spontaneous spending. Seven will be performed on the perimeter of the State, and five on that of social Security. Three billion euros of savings will also be made to the local communities via a “contract” with the 319 largest of them.
Two missions, side State, will be mainly making a contribution: aid for public housing and assisted contracts.
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The draft budget also foresees a decline in the numbers of 1,600 positions, of which 354 for the State and 1.276 for its operators. The deputies have recovered the day of deficiency in the public service in case of stop disease.