Report

Committee for the evaluation of capital tax reforms - Third report

The committee for the evaluation of capital tax reforms was set up in December 2018, i.e. one year after the launch of the far-reaching renovation of capital taxation carried by the government and voted by the legislature: introduction of a single flat-rate levy (PFU) on savings income and replacement of the solidarity tax on wealth (ISF) with a refocused tax on real estate wealth (IFI). In addition, the reduction of the corporate income tax (IS), complementary to these transformations, has been programmed over the entire five-year period, with a nominal rate of 25% for all companies from 2022.

Published on : 14/10/2021

Temps de lecture

2 minutes

progressed in several directions. First, the landscape was completed: more detailed analysis of France's position before and after the reform compared to other developed countries in terms of taxation of households on their wealth and the income it generates; ex post evaluation of the 2013 reform (which replaced the flat-rate taxation of capital income with a progressive tax), which can be seen in part as symmetrical to the introduction of the PFU. Additional figures were then provided, including the distribution of income from movable property received in 2018 compared with 2017 and the entry and exit of wealthy tax residents in 2018. Finally, the very first elements of evaluation of the introduction of the PFU and the transformation of the ISF into the IFI were presented, even if they remained very fragmentary, particularly the latter.

This third report updates the figures and qualitative information provided in the previous reports and presents the ex post evaluation work carried out by the research teams contracted by France Stratégie on the introduction of the PFU and the transformation of the ISF into the IFI. From all this work, accumulated over three years, the committee has drawn the following conclusions.