Global Daily Tax News, France Issues Guidance On Non-Revaluation Of Income Tax Scales, (Jan 6, 2025)

France's Finance Ministry has issued guidance on the impact on income tax scales following lawmakers' failure to pass a 2025 Finance Bill.

The guidance, available only in French, explains that, in the absence of a 2025 Finance Bill, income tax scales have not been revalued. The guidance is intended to explain the consequences for taxpayers and their representatives, before a new Finance Bill is adopted.

In December 2024, French lawmakers in both houses of parliament signed off instead on a special finance bill, following the collapse of the Government.

The special finance bill enables the collection of existing taxes and for the Finance Minister and social security organizations to borrow to cover spending needs.

The bill was adopted following the breakdown in negotiations on this year's Budget and Finance Bill. The Government's plans had included tax hikes and spending cuts worth some EUR60bn.

The special finance bill was approved by the National Assembly on December 16 and by the Senate on December 18, 2024. France's newly appointed Government met for the first time on January 3, 2025, to begin replacement Budget discussions.