France’s highest court has approved a 75% tax on high earners that is one of President Francois Hollande’s signature policies.
The initial proposal to tax individual incomes was ruled unconstitutional by the Constitutional Council almost exactly one year ago.
But the government modified it to make employers liable for the 75% tax on salaries exceeding 1m euros (£830,000).
The levy will last two years, affecting income earned this year and in 2014.
Football clubs in France went on strike earlier this year over the issue, saying many of France’s clubs are financially fragile and say the plans could spark an exodus of top players who are paid huge salaries.