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French Supplementary Finance Bill Includes Bonus Tax

Thursday, February 11, 2010

The French National Assembly has adopted, in its first reading, the 2010 supplementary finance bill (collectif budgétaire), providing for the introduction of a windfall tax imposed on bonuses paid by banks to their employees.

The one-off 50% tax, payable by banks in France, is to be levied on 2009 bonuses in excess of EUR27,500.

The supplementary finance bill also stipulates that revenues from this exceptional tax, estimated at around EUR360m, are to be transferred in their entirety to Oséo, the public bank working to support innovation and small- and medium-sized enterprises.

Jérôme Chartier, speaker for the Union for a Popular Movement on budgetary issues, welcomed the fact that the exceptional tax would be directly allocated to SME funds, without risk to the Parisian financial center.