Solidarity tax on wealth

From ArticleWorld

The solidarity tax on wealth is a French tax that is annually assessed on those that have assets in excess of 720,000 Euros.

The calculation applies to tax declarers, meaning that it can apply to a grouping of two individuals in cases such as marriage, couples living together or PACS.

For French residents all global assets are taken into account, whereas for others the tax is based on assets which reside in France with the exception of financial ones.

Criteria

In principle all assets are taken into account except for the following:

professional goods , vintage, more than one century old and collection objects, artistic, literature or industrial rights, woods and participation in forestry plantations, anonymous bonds, capital value of pensions and retiring plans, income obtained as compensation for body damage in accidents or due to illness, Rules to fix the net taxable value, the value is the net one, i.e. what remains of the gross value after having subtracting the deductible debts.

Certain Key Rules

The gross value is determined by the declarer following certain rules. For example, the value of the principal home is reduced by 20% as is done for some specific rent incomes. Certain real estate properties in countries with a fiscal convention such as Denmark, Luxembourg, Egypt, Finland, Netherlands, and Czech Republic are not taken into account.

The furniture of the home cannot exceed 5% of the total of the other goods.

The sum calculated is adjusted such that the sum of the wealth tax and other taxes due in France does not exceed 85% of the annual revenues.

Aside from these factors, the direct tax applies to those that are applicable to it.