In France, 20,000 of the wealthiest tax households are liable for the exceptional contribution on high incomes (CEHR), introduced in 2008 after the financial crisis. The amount is calculated from the reference taxable income of the previous year and according to different thresholds.
Some of the wealthiest taxpayers have to pay a surplus of income tax. it’s about the exceptional contribution on high incomes (CEHR), decided in 2008 under the presidency of Nicolas Sarkozy to bail out public finances after the economic crisis, recalls What to choose.
Alone 20,000 French households are liable for this exceptional tax. These are those whose reference tax income (RFR) for 2021 is greater than 250,000 euros if they are single and 500,000 euros in the case of a marriage or civil partnership with joint taxation. The threshold does not increase if there are children or dependents attached to the household.
settle at the end of the year
There are two tax rates. From 250,001 to 500,000 euros of RFR, single taxpayers are subject a rate of 3%, and 4% if it exceeds 500001 euros. For married people, a reference tax income between 500,001 euros and one million euros is taxed at 3%, and beyond one million euros at 4% under the CEHR.
The amount to be paid appears on the tax notice. Payment is made at the end of the year, at the same time as the 2022 tax balance. The tax authorities do not take the CEHR into account for calculate the withholding tax rate update which will be applicable from next September.
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According to the law that established it, the CEHR will be abolished when the public deficit is resorbed. For 2021, the public deficit stood at 160.9 billion euros according to INSEE. Each year, the CEHR allows the state to recover between 200 and 250 million euros. We are therefore far from the mark.
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