Commission Requests France to Change Capital Gains Tax Rules on Precious Metals
The European Commission has issued a reasoned opinion to France calling for the amendment of French tax rules on disposals of precious metals. Under current French law, a resident taxpayer can pay tax on the amount of capital gains realised at the progressive personal income tax rate or pay a flat-rate tax of 16% on the total amount of the sale. However non-residents are obliged to pay the flat-rate tax.
The Commission considers the different treatment between tax residents and non-tax residents to be a restriction on the free movement of capital under Article 63 of the Treaty on the Functioning of the European Union and Article 40 of the Agreement on the European Economic Area.
The Commission's intervention on the matter constitutes the second stage of infringement procedures. If there is no satisfactory response within two months, the Commission may decide to take France to the EU Court of Justice.