Exceptional 50% tax on the portion of pay above 1 million euros
The 2014 Finance Act introduced an exceptional tax paid by companies on individual remuneration granted in 2013 and 2014 (salaries, benefits, directors' fees, top-up pensions, stock options, free shares, etc.) for the portion exceeding 1 million euros per beneficiary. The rate is 50% and the amount is capped at 5% of the company's turnover. The Constitutional Council declared it constitutional (decision no. 2013-685 DC).
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
The tax is paid by companies, not employees. The Government estimated it would concern about 470 companies and 1,000 executives or employees, with a yield of 260 million euros in 2014 (and 160 million euros in 2015 according to the impact assessment).
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
Council of Ministers
Validation interne