In the wake of Parliament's unanimous adoption of a special finance law to avert a 2026 budget blockade, several planned tax measures unfavorable to taxpayers cannot take effect next year. This spares affected individuals while costing the government potential revenues. Minister Amélie de Montchalin confirmed the details during her December 22 National Assembly hearing.
France's 2026 budgetary deadlock, addressed by the special finance law extending 2025 provisions (as covered previously), blocks implementation of new tax rules, especially on income tax.
Minister of Public Action and Public Accounts Amélie de Montchalin told the National Assembly's finance committee on December 22: 'The planned modifications will not be able to apply.' Without a finance bill passed by December 31, 'there is no longer any hook possible to apply in 2026 rules relating to 2025 income.' Unfavorable changes cannot be applied retroactively, preserving current taxpayer benefits.
This fiscal gap denies the state additional revenues but offers respite from planned reductions in tax advantages. The special law ensures administrative continuity amid the impasse.
