The French projet de loi de finances (PDLF) for 2021 has been presented to the French parliament. It includes the tax changes that the French government is proposing. Some of these tax changes are standard updates (such as the thresholds for the income tax bands) but also some new tax laws. Below is a summary of the main changes that are of interest.<\/p>\n\n\n\n
The income tax rates for 2020 income and the tax band thresholds had already been decided last year. This included changes compared to previous years with the rate for the second tax band dropping from 14% to 11% and the size of the bands being modified. The tax band thresholds are inflation-linked, and the amounts decided last year are to be increased by 0.2% for 2020 income. The table below shows the proposed rates and thresholds for 2020 as well as 2019 for comparison.<\/p>\n\n\n