75% tax rate levied on high earners in France

Individuals whose salaries exceed 1 million Euros (USD 1.55mn) are now required to pay a 75% tax to the authorities in France, as per the taxing policy approved by France’s highest court.

The levy will last two years, affecting income earned this year and in 2014.

The policy is  one of President Francois Hollande’s signature policies and aims to bring down the country’s huge public deficit.

Businesses and wealthy individuals have condemned the tax and some have protested.

Football clubs in France threatened to go on strike earlier this year over the issue, saying many of France’s clubs are financially fragile and say the plans could spark an exodus of top players who are paid huge salaries.

The Qatari-owned Paris Saint-Germain has more than 10 players whose pay exceeds 1m euros, including the Swedish striker Zlatan Ibrahimovic.

Individuals whose salaries exceed 1 million Euros (USD 1.55mn) are now required to pay a 75% tax to the authorities in France, as per the taxing policy approved by France’s highest court.

The levy will last two years, affecting income earned this year and in 2014.

The policy is  one of President Francois Hollande’s signature policies and aims to bring down the country’s huge public deficit.

Businesses and wealthy individuals have condemned the tax and some have protested.

Football clubs in France threatened to go on strike earlier this year over the issue, saying many of France’s clubs are financially fragile and say the plans could spark an exodus of top players who are paid huge salaries.

The Qatari-owned Paris Saint-Germain has more than 10 players whose pay exceeds 1m euros, including the Swedish striker Zlatan Ibrahimovic.