All individuals who are tax domiciliaries of France are subject to wealth tax if their world-wide net taxable assets as of January 1 of any given taxable year are valued in excess of the legal taxable threshold. The wealth tax is also imposed on all individuals who, although not otherwise […]
Whether benefits are achieved through a branch or a subsidiary, they are liable to corporation tax as long as the foreign entity is a corporation (or the French subsidiary has this form). The withholding tax (25% in principle) that affects the distributions to non-residents applies to dividends paid to foreign […]
Tax Returns. A corporate income tax return with all its appropriate schedules must be filed within a period of three months following the close of each fiscal year; if no fiscal year ended during a calendar year, a return must be filed for the preceding calendar year on or before […]
France has entered into bilateral double taxation treaties with approximately ninety countries. Although the tax treaties the France has entered into with developing countries, especially the French speaking African countries, contain specific provisions designed to encourage French investments in those countries, most of the treaties which France has concluded or […]
The scope of application of the French corporate income tax is determined on a territorial basis. Thus, a French or foreign company is subject to corporate income tax only on its income derived from business operations carried on in France. A distinction is made between a French or foreign company […]
Tax shield and Wealth Tax: non-residents taking the bulk of their revenues from France. The French Tax Service gives the benefit of tax shield and the CAP of WEALTH TAX to non-residents considered tax resident in France under Article 4 B, b or c of French Tax Code as long as they derive […]
The ECJ ruled that the VAT identification number is not a condition of deductibility. For the Court of Justice, the VAT identification number is not a condition of the right to deduct: a person not yet identified at the time he has incurred expenditure subject to VAT can not be denied […]
section written by: Jean-Jacques Michallon French tax Attorney former tax inspector www.j2m-online.fr/english The first precaution to take before choosing a tax lawyer is to verify that it actually holds the certificate of specialization in tax . Indeed, each lawyer may act as an ordinary practitioner or choose to specialize. Obtaining a […]
Net taxable income is theoretically the net increase in a taxpayers net worth from one fiscal year to the next. Such net increase is equal to the difference between the net book value of assets at the beginning and at the end of the fiscal period, decreased by any additional […]
It is important to point out the specific tax accounting rules which must be followed in connection with the determination of the net taxable income of companies subject to French corporate income tax. Every company engaged in commercial activities in France is required to keep a journal (livre journal) in which […]
