French taxes: pay flat rate or none at all?

We have, for a long time, had the option of fixed rates of tax on investment income in France, known as PFL or prélèvement forfaitaire libératoire, or the choice of having the income taxed at income tax scale rates.

These flat rates may be applied to certain kinds of savings; such as savings accounts, life insurance bonds (known as assurance vie) and some dividends.

Under the first budget of President Macron’s new government, this has been “simplified” (his words not mine).

Fixed rates have now been altered (or extended, depending on your point of view).

The headline on its release was that the new flat tax rate would be 30%! Simple or simply horrific? It begs the question: does PFL now stand for Punitive Financial Liability?

The good news is that the ...

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