Income tax reform: five-band scale (40% top rate) and integration of the 20% allowance

Articles 75 and 76 of the 2006 Finance Act (Articles 59 and 60 of the bill) reform income tax from the taxation of 2006 income, assessed in 2007. The scale goes from seven to five bands and the top rate from 48.09% to 40%. The 20% allowance on wages, salaries and pensions is abolished and built into the scale, whose rates are reduced accordingly, with correcting measures for income that did not benefit from it. After indexation by Article 2 of the 2007 Finance Act, the scale applied to 2006 income has a 0% rate up to €5,614 per share, then 5.5%, 14%, 30% and 40% above €66,679. The top rate was raised to 41% from the taxation of 2010 income.