France extends tax shield to non-residents: report

12th January 2011, Comments 0 comments

France will expand the benefits of its tax shield to non-residents who are liable to pay taxes in the country, the La Tribune business daily reported on Wednesday, following a complaint by the European Commission.

The newspaper reported that the French official government journal has published an order for tax authorities to apply to apply to non-residents of the country's tax shield, which limits payments to 50 percent of income.

The EU's executive Commission last October sent France a warning that it found the limitation of the tax shield benefit to residents to be discrimanatory.

Non-residents may become liable to pay taxes in France if they have significant business interests or spend significant time in the country.

France's wealth tax on assets has caused a number of super-rich to move to other countries.

© 2011 AFP

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