abattement

Abattement is a French legal and financial term that denotes a reduction or exemption applied to a taxable base. In the context of fiscal law, it refers to a prescribed deduction that lowers the amount of income, capital gain, or other tax base to which tax rates are applied. The concept is integral to the French tax system, appearing in legislation such as the Code général des impôts, where various abatements are specified for different economic activities or personal circumstances. Typical examples include the abattement forfaitaire for professional expenses, the abattement for familial responsibilities, and the abattement for certain types of capital gains. The mechanism allows taxpayers to receive a statutory discount without having to produce receipts or detailed documentation, simplifying compliance while encouraging compliance with the tax law. The abattement rate and eligibility criteria are periodically updated by government decrees and are often contingent on factors such as income thresholds, family composition, or the nature of the revenue. The term can also appear in civil law contexts, such as reductions in property taxes or special allowances in contractual agreements. In summary, an abattement functions as a standardized tax relief instrument designed to adjust taxable amounts in accordance with statutory provisions.