french tax system


Payment of French income tax

Since January 1, 2019, Payment of French income tax is processed by withholding at source (PAS) according to 2 different methods varying according to the nature of the income. The payment is made by withholding at source by the debtor of income or made by installments paid by the income […]


French income tax scale

The Tax Bracket For the taxation of income received during the previous calendar year, the finance law provides for a revaluation of the brackets of the income tax scale. The brackets limits take into account the increase in prices excluding tobacco. Income received in 2020 Rate Income received in 2021 […]


Income Tax: who are the taxable persons?

French income tax applies, in principle, to all income received by Taxable persons domiciled in France. But some taxpayers may be living outside of France. Moreover, some people are expressly exempt. The tax is established at the level of the tax household. 1. Extent of taxation according to domicile The […]


French Income tax – The Gist of it

French Income tax is calculated on the basis of an overall income defined as the accumulation of categorical income net of deductions and fees: professional income (salaries, BIC, BNC, BA, etc.) , pensions, retirement and annuities and income from assets: income from movable property, property income gains es on transferable […]


FRANCE CAN BE A TAX HEAVEN FOR EXPATS

Pursuant to Article 155 B of the French Tax Code, employees and company executives coming to France as expats to take up employment in a company based in France, are elligible to a specific Tax Exemption that amounts to that offered in Tax Heavens. On the double condition of not having been fiscally […]


Residence test for tax purposes and remittance basis principle

The French High Tax Court (Concil of State) ruled on the impact of the regime of the ‘remittance basis’ on the quality of resident within the meaning of the Franco-British convention. CE 27 juillet 2012 n° 337656 et 337810, 9e et 10e s.-s., min. c/ R. Tax treaties, when they […]


French tax credit relating to foreign source income

Two recent decisions of the State Council shall specify the method of calculating the tax credit equal to the French tax attributable to income of German and American.  Since the late 1980s, the tax treaties signed by France based, for the elimination of double taxation of income previously subject to […]


A range of fiscal measures to stabilize public finances of France

On 24 August, François Fillon announced a range of fiscal measures to stabilize public finances of France. Some of these provisions have now been made official by publication in the Official Gazette of the second supplementary budget in 2011, others should follow. Changing the taxation of real estate gains, rising […]


How to devise new tax planning strategies

Modification of the ISF, abandonment of the tax shield, tightening on gifts and estates, tax increases on important life insurance contracts, setting up an Exit Tax : before leaving for recess , deputies and senators adopted the bill amending the taxation of wealth. While some cogitate on new tax planning strategies that will […]


French Research Tax Credit

The Minister of Economy, Finance and Industry and the Minister of Higher Education and Research presented a paper on the review of the research tax credit (CIR). Private Research and development (R & D) is a key factor for increasing business productivity, exports and business results. Thus, CIR is one of […]