{"id":19987,"date":"2025-11-14T13:15:05","date_gmt":"2025-11-14T12:15:05","guid":{"rendered":"https:\/\/farewelltax.com\/ldf2025-an-update-on-the-new-differential-tax-on-high-incomes-cdhr\/"},"modified":"2026-09-24T11:35:48","modified_gmt":"2026-09-24T09:35:48","slug":"ldf2025-an-update-on-the-new-differential-tax-on-high-incomes-cdhr","status":"publish","type":"post","link":"https:\/\/farewelltax.com\/en\/ldf2025-an-update-on-the-new-differential-tax-on-high-incomes-cdhr\/","title":{"rendered":"LDF2025: An Update on the New Differential Tax on High Incomes (CDHR)"},"content":{"rendered":"\t\t
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As part of the latest budget law for 2025, a new differential tax on high incomes (CDHR) was introduced.<\/p>\n

This measure aims to establish a minimum tax rate of 20% on income for the year 2025.<\/strong><\/p>\n

It applies to taxpayers who are tax residents of France whose reference taxable income for the year 2025 exceeds:<\/p>\n

    \n
  • \u20ac250,000 for single, widowed, separated, or divorced taxpayers<\/li>\n
  • \u20ac500,000 for married taxpayers or those in a civil partnership who file a joint tax return.<\/li>\n<\/ul>\n

    In practice, the CDHR applies to taxpayers whose income consists primarily of income from financial investments<\/strong> taxed at a flat rate: dividends, interest, and capital gains subject to the single flat-rate withholding tax of 12.8%, as well as redemptions from life insurance or capitalization contracts taxed at 7.5% or 12.8%.<\/p>\n

    Taxpayers for whom a significant portion of their income is subject to the progressive tax scale should not be required to pay this contribution.<\/p>\n

    The tax authorities require the payment of an advance payment<\/strong> equal to 95% of the estimated amount of the CDHR between December 1 and 15, 2025, with the balance to be settled when the final tax return is filed next June.<\/p>\n

    It is therefore advisable to plan for<\/strong> this payment now<\/strong> in order to avoid any delays in payment or errors in calculating<\/strong> this down payment, since:<\/p>\n

      \n
    • In the event of a delay or failure to pay the deposit, a 20% surcharge may be applied to the deposit amount.<\/li>\n
    • If the advance payment is more than 20% less than the amount due, a 20% surcharge will also apply to the tax base corresponding to the shortfall in the advance payment.<\/li>\n<\/ul>\n

      The FareWell team is available to provide you with further details about the CDHR: its scope of application, calculation methods, reporting requirements, and payment procedures for this advance payment.<\/p>\n\t\t\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t <\/div>\r\n <\/div>\r\n \t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

      As part of the latest budget law for 2025, a new differential tax on high incomes (CDHR) was introduced. This measure aims to establish a minimum tax rate of 20% on income for the year 2025. It applies to taxpayers who are tax residents of France whose reference taxable income for the year 2025 exceeds: […]<\/p>\n","protected":false},"author":2,"featured_media":19988,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rs_blank_template":"","rs_page_bg_color":"","slide_template_v7":"","footnotes":""},"categories":[95],"tags":[],"class_list":["post-19987","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth-taxation"],"yoast_head":"\nLDF2025: An Update on the New Differential Tax on High Incomes (CDHR) - FareWell Tax<\/title>\n<meta name=\"description\" content=\"The CDHR applies to taxpayers whose income consists primarily of income from financial investments taxed at a flat rate. 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