Taxes / VAT - France

Here is an overview of the most important changes:

• Remuneration for overtime: extra payments owed for overtime in accordance with wage agreementsAgreements are becoming increasingly important within the context of international commerce. Given the different written laws and forms of legal practice that exist across the world and the different interpretations of the law that are culturally conditioned, it is impossible to devote too much attention to devising “good” agreements. Model agreements have proven to be useful, particularly for companies with little experience in this area., bargaining agreements or general legislation are not subject to income tax. There are also reductions in terms of the social security contributions (overtime pay is subject to a reduced rate) payable by both employees and employers, with the latter enjoying reductions of between EUR 0.50 and 1.50 for each hour of overtime worked. 
• Reduction in inheritance tax: 95% of assets bequeathed directly to beneficiaries are exempt from inheritance tax (100% for spouses). The tax threshold for inheritances and gifts has also been increased to EUR 150,000.
• Relief on property inheritances: where the property inherited is to be used as the beneficiary’s main residence, 20% of the purchase price is exempt from taxation, although the amount of relief available is limited to EUR 3750 for single persons and EUR 7500 for couples without children.
• Restriction of the top rate of tax to 50% (was 60%)
• Reduction in the tax on assets: 75% of the amounts invested in small and medium-sized enterprises or in companies in which the state has an interest are tax-deductible up to a maximum of EUR 50,000 a year. (pd/bfai/na)

Loi n° 2007/1223 du 21 août 2007 en faveur du travail, de l'emploi et du pouvoir d'achat