While ministers, MPs and senators are preparing to go on holiday, the supplementary budget passed last night will burden the tax bill individuals. The text endorses 7.2 billion of new taxes.

First step that will affect all employees: the end of “work more to earn more” that is the end of the overtime exemption . Henceforth overtime pay will be added to the taxpayer’s other income and taxed at the progressive income tax. This measure will affect approximately 9.5 million people should report to state 3 billion euros. But it will cost each household tax a whopping 450 euros extra tax. Only remaining exemption of employer costs in firms with fewer than 20 employees.

Other bad news: the heavier the gift tax and estate online direct . If the exemption for spouses and partners of a PACS, adopted during the Sarkozy era is not affected, the allowance per child is reduced from 159,325 euros to 100,000 euros. This franchise will be granted only every 15 years instead of 10 years ago. This measure will yield 1.22 billion euros and will impact heavily inheritance from 300,000 euros. However, the government succeeded in pushing the proposal made ​​by a Senator to lower allowances between brothers and sisters and uncles and nephews. They will remain at 15 932 euros and 7967 euros. Other bad news: the mechanism of annual updating of allowances, rates and thresholds for inflation is suspended. In other words, As the years the tax burden will increase insidiously.

tax-return

As for the ISF, it is not changed this year but has created an outstanding contribution . This surcharge is expected to generate at Bercy 2.3 billion euros. It is the difference between the TFR in 2011 (with rates up to 1.80%) and reduced the 2012 ISF. The tax threshold for 1, 3 million is however not changed. Taxpayers reaching the threshold of fortune pay the bill in November. For the 29,000 holders of assets in excess of 4 million, the rating will rise by 22%. Unless the Constitutional Council, by contrast, does not invalidate this device because of its lack of a cap may be confiscatory. Stay tuned!Non-residents, have hitherto been exempt from social security contributions for services not covered by the French, will now be subject to removal of 15.5% (CSG, CRDS and other additional contributions) on income from land and real estate gains the assets they hold in France.

The tax on financial transactions involving the securities of companies whose market capitalization is more than 1 billion euros increased from 0.1% to 0.2%. It is the responsibility of individual buyers. An additional contribution to the corporate tax on dividends distributed is also planned. Its rate is 3%. It affects the dividends paid in cash excluding distributions paid in shares. It could lead to a significant decrease in the amount of dividends paid to shareholders.

The taxation of stock options and free distribution of shares to directors is increased . The employer contribution from 14% to 30% and employee contribution of 2.5% to 8% and 10. In the same vein, the social charges on top-hat and golden parachutes for executives will double. The only good news: the VAT anti-off shoring of 21.2% will not come into force on 1 st October . It remains at a rate of 19.6%. As for the reduced VAT rate increased from 5.5% to 7% it is not repealed. We return only 5.5% for the book, live performances (concerts, theaters, circuses) and improvement work on social housing.