France: Selected Issues
IMF Staff Country Reports, September 21, 2017
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- France: Selected Issues
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Bibliographic details
- Published: September 21, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484320334.002
Corporate income tax (CIT) — findings
- The CIT regime features a high statutory rate but low revenue productivity.
- There is a bias toward debt financing.
- Size-dependent regimes are ineffective.
- Tax incentives are inefficient.
- Profit-insensitive taxes are comparatively high.
- Anti-tax-avoidance rules are strong, but risks to outbound profit shifting remain.
- Tax uncertainty is a concern.
Taxation of individuals — findings
- The system of taxing wealth and capital income is complex.
- There are distortions from differential taxation across savings instruments.
Government reform plans (as described)
- Reduce the CIT rate.
- Further cut the labor tax wedge.
- Unify taxes on capital income.
- Narrow the wealth tax.
IMF staff analysis and policy recommendations
- Complement the government’s planned reforms with measures to:
- Remove inefficient tax incentives.
- Further reduce the debt bias.
- Address disincentives to company growth.
- Streamline the taxation of long-term savings.
- These complementary measures could enhance the reforms’ impact on competitiveness, revenues, and growth.
Source: France: Selected Issues (IMF Staff Country Reports 2017, 289).
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