With the objective of going back to the progressive tax rates table which was applicable for 2011 wealth tax, the Government proposed to enact, temporarily and only for 2012, an exceptional contribution on the wealth tax.

The base for this contribution is identical to the base used to calculate the wealth tax for 2012.

Only taxpayers whose net taxable assets exceed a 1.3 million euro threshold will be subject to the exceptional contribution on the wealth tax.  The progressive tax rates table applicable for 2011 wealth tax will then be applied to such assets, beginning at 800,000 euros.  The amount of the net contribution will be obtained after deducting the amount of the wealth tax due for 2012 without taking into account wealth tax reductions for dependent persons (Article 885 V of the French Tax Code), subscriptions for capital in small and mid-size companies (Article 885-0 V bis of the French Tax Code) and gifts to certain charitable foundations (Article 885-0 V bis A of the French Tax Code).  The wealth tax reductions already applied will therefore remain applicable.  On the other hand, it will not be possible to decrease the exceptional contribution by making additional gifts to foundations or by subscribing for the capital of a small or mid-size company.  In addition, this exceptional contribution will not be capped.

A specific measure is being contemplated for taxpayers domiciled in France as of January 1, 2012, but who have left the country as of July 4, 2012, the date on which the amending finance bill was adopted by the Council of Ministers.  These taxpayers will owe only the contribution on the net taxable value, as of January 1, 2012, of their assets located in France (not on worldwide assets).

In practice:

  • Taxpayers with assets between and including 1.3 million and 3 million euros, who had to declare their wealth tax based on the simplified declaration rules in force since the July 2011 reform (form Cerfa n°2042-C), will receive in their wealth tax bill the net amount of the exceptional contribution on wealth tax, which they will have to pay at the same time.
  • Taxpayers who own assets worth more than 3 million euros will have to file a new return accompanied by payment of this contribution, by no later than November 15, 2012.