Global Daily Tax News, French Senate Shoots Down Minimum Wealth Tax Proposal, (Jun 17, 2025)

The French Senate has rejected a proposal to establish a new minimum tax on the country's wealthiest taxpayers.

The legislation, earlier approved by the National Assembly, includes provisions to establish a two-percent minimum tax on the assets of France's richest persons, and of assets held in France by wealthy non-residents.

The levy was to apply to French tax-domiciled individuals with worldwide assets exceeding EUR100m. Those domiciled in France for fewer than five years were to be taxable only on their assets located in France.

The levy was to apply to taxable assets, valued at January 1 each year, with married couples taxed jointly.

France's inability to see the legislation through to enactment is a major blow to efforts championed by Brazilian Finance Minister Fernando Haddad to muster international support for a global minimum wealth tax on the world's wealthiest taxpayers.

Bruno Le Maire, France's former Finance Minister, had pledged France's support for the project, which was a key initiative of the Brazilian Government during its ongoing presidency of the G20, building on the political momentum of the OECD's two-pillar international tax reform plan.

Haddad has called for countries to commit to the introduction of a coordinated minimum tax on substantial fortunes, to be set at two percent annually. He proposed the tax would apply to the world's wealthiest 3,000 billionaires. Taxing wealth rather than income, he said, would reduce opportunities for tax avoidance or the deferral of liability. It is estimated the levy could potentially untap USD250bn in revenues annually and support wealth distribution efforts.