## France: Selected Issues

_IMF Staff Country Reports, September 21, 2017_

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**Canonical URL:** [France: Selected Issues](https://www.imf.org/en/publications/cr/issues/2017/09/21/france-selected-issues-45271)

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## Bibliographic details
- Published: September 21, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484320334.002

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### Corporate income tax (CIT) — findings
- The CIT regime features a high statutory rate but low revenue productivity.
- There is a bias toward debt financing.
- Size-dependent regimes are ineffective.
- Tax incentives are inefficient.
- Profit-insensitive taxes are comparatively high.
- Anti-tax-avoidance rules are strong, but risks to outbound profit shifting remain.
- Tax uncertainty is a concern.

### Taxation of individuals — findings
- The system of taxing wealth and capital income is complex.
- There are distortions from differential taxation across savings instruments.

### Government reform plans (as described)
- Reduce the CIT rate.
- Further cut the labor tax wedge.
- Unify taxes on capital income.
- Narrow the wealth tax.

### IMF staff analysis and policy recommendations
- Complement the government’s planned reforms with measures to:
  - Remove inefficient tax incentives.
  - Further reduce the debt bias.
  - Address disincentives to company growth.
  - Streamline the taxation of long-term savings.
- These complementary measures could enhance the reforms’ impact on competitiveness, revenues, and growth.

*Source: France: Selected Issues (IMF Staff Country Reports 2017, 289).*

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_Source: https://www.imf.org/en/publications/cr/issues/2017/09/21/france-selected-issues-45271_