A net worth tax is levied on individuals whose taxable net worth exceeds a specified amount (FF 4,530,000 on 1 January 1995). Residents of France are taxable on their world-wide net assets, but non-residents are taxable only on the portion of their net worth located in France.

Taxable net worth includes the values of a principal residence, other real estate, financial investments, motor-cars, furniture and jewellery. The law provides for exemptions for works of art, antiques and, under certain conditions, business assets. Moreover, certain tax treaties, such as the treaty with the United States, grant some specific exemptions. Underlying loans and liabilities are subtracted from the gross value of assets.

The total amount of net worth tax plus standard income tax may not exceed 85% of the taxpayer's taxable income.

The net worth tax return must be filed, together with the tax payment, by 15 June each year.

The following table presents the net worth tax rates.
	Taxable Net Worth 
Exceeding			Not Exceeding		Rate 
FF				FF			% 
0				4,530,000		0
4,530,000			7,370,000		0.5
7,370,000			14,620,000		0.7
14,620,000			22,690,000		0.9
22,690,000			43,940,000		1.2
43,940,000			_			1.5
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. For additional information contact Pierre Knoepfler on +33 (1) 46 93 70 00.
© Business Monitor 1995 Tel +44 171 820 7733.