2026 Finance Bill: Wealth Taxation Under Pressure
The Finance Bill for 2026 (PLF 2026), submitted to the National Assembly on October 14, marks the beginning of a crucial budget period. The government has committed not to use Article 49.3, thus promising parliamentary debates rich in amendments. While awaiting the outcome, Meeschaert Financial provides an overview of the main measures likely to impact taxpayers and wealth investors.
Symbolic but Significant Tax Adjustments
One of the key measures is a 2% tax on the financial assets of holding companies, targeting structures that meet four criteria: size, control, passivity, and status as a top-tier holding. This measure, still under discussion, aims to better mobilize dormant assets for the financing of the real economy. Another sensitive issue is the lack of adjustment in the income tax brackets, in a context of still-high inflation. In practice, this would mean an automatic increase in the tax burden for many households, simply due to the shift of their income into higher brackets.
The government also plans to extend the additional high-income contribution (CDHR) for an additional year. Introduced in 2011, this contribution applies to households with a reference taxable income exceeding 250,000 euros for a single person. It was initially set to expire at the end of 2025, but its extension would help retain approximately 400 million euros in revenue.
Retirement, Donations, and Savings: Technical Insights
The PLF introduces a flat deduction of €2,000 on retirement pensions, replacing the current 10% deduction. This arrangement, although more straightforward, would be unfavorable for retirees with low incomes, especially since the additional deduction for those over 65 would be removed, except under certain income conditions. The proposal also suggests increasing the donation cap that qualifies for a tax reduction from €1,000 to €2,000 when these donations benefit the most disadvantaged, with a reduction rate of 75%.
Finally, the “Madelin” tax reduction for subscriptions to FCPI and FIP would be replaced by a 30% tax credit to simplify the tax system for investing in innovative SMEs.
In summary, a comprehensive bill focused on revenue stability and holding asset investors accountable.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
