Court backs France’s 75% tax on salaries over €1m

French president François Hollande received approval from the country’s constitutional court to proceed with his plan to tax salaries above €1m at 75% for this year and next.

Under Hollande’s proposal, companies will have to pay a 50% duty on wages above €1m. In combination with other taxes and social charges, the rate will amount to 75% of salaries above the threshold, the court wrote in a decision published yesterday.

“The companies that pay out remuneration above €1m will, as expected, be called upon for an effort of solidarity on remuneration paid in 2013 and 2014,” the Economy Ministry said in an e-mailed statement.