Daily allowances for work accidents taxable on 50% of their amount

Article 85 of the 2010 Finance Act makes 50% of the daily allowances paid to victims of work accidents subject to income tax; they were previously fully exempt (Article 81, 8° of the General Tax Code). Benefits and life annuities remain exempt, as do daily allowances linked to a long-term illness. According to the finance committee, the taxable share corresponds to replacement income. The measure applies to allowances paid on or after 1 January 2010. It stems from an amendment by Gilles Carrez, general rapporteur of the National Assembly finance committee.