France to ease finance, tax rules to attract Brexit bankers
* France to reduce regulatory burden to EU minimums
* Carried interest to get favourable tax treatment
* To become possible to amortise goodwill
PARIS, July 11 (Reuters) - France will pare back financial
regulations to EU minimums and introduce new tax incentives to
make Paris a more attractive finance hub, Prime Minister Edouard
Philippe said on Wednesday.
Speaking to a reception for 200 finance executives, Philippe
said most of the changes would be made by the end of the year,
as countries across the EU battle to attract bankers from London
amid uncertainty over the impact of Brexit on the region's
biggest financial centre.
For asset managers coming to France, they will be able to
have capital income known as carried interest taxed at 30
percent rather than higher income tax rates.
The country will also make it possible to amortise goodwill,
as in Germany, as part of a longer term European project to
harmonise regulations for calculating corporate tax.
"A financial centre is built with patience, by being
consistent. I want this consistency to be the trademark of our
economic strategy and our attractiveness policy," Philippe said
in a speech.
The moves add to steps already taken by President Emmanuel
Macron aimed at boosting Paris as a financial centre, such as
plans to gradually cut corporate tax to 25 percent and scrapping
a wealth tax on financial assets.
Macron's government has also set a flat tax of 30 percent on
all capital income and removed the top marginal band of payroll
tax, although the moves have led to criticism of Macron as being
a president for the rich.
Paris is competing with the likes of Frankfurt, Dublin and
Luxembourg to win over finance jobs in the wake of Britain's
departure from the EU next March.
The Paris Europlace financial sector lobby said on Wednesday
Paris was set to win 3,500 financial sector jobs leaving Britain
due to Brexit.
HSBC would make up the bulk, with 1,000 jobs, while
French banks moving posts back to their base in Paris would add
another 1,000 jobs, and the rest would come from a host of Wall
Street banks and other financial firms.
Bank of America Merrill Lynch, JPMorgan,
Citigroup, Morgan Stanley, Goldman Sachs,
Standard Chartered and Wells Fargo have all
made "announcements in favour of Paris", Paris Europlace said.
(Reporting by Jean-Baptiste Vey; Additional reporting and
writing by Leigh Thomas; Editing by Michel Rose and Mark Potter)
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