1 – Corporate tax:
Are taxable to the Corporate tax, as a rule, limited liability companies (SA, SAS, SARL, etc …) and partnerships and similar groups have opted to impose the tax.
CorporationTaxe rates:
Normal rate: 33 1 / 3% of taxable income;
Reduced rate for SMEs 15% (up € 38 120 of taxable income);
There is also a social contribution of 3.3% calculated on the amount of the SI after deduction of € 763 000 excluding SMEs.
Payment of CT:
It is through quarterly installments.
Exemption from payment of installments:
If tax <3 000 €
The first year of operation
Deficits:
Since 2004, the deficits are carried forward indefinitely forward.
The carry back of losses is possible (over 3 years), thus creating a claim on the Treasury.
IFA:
Flat tax based on turnover and payable by companies subject to corporation tax with a turnover> at 1 500 000 € for 2009 to € 15,000,000 for 2010, then deletion of 2011.
Tax deductible income.
2 – VALUE ADDED TAX (VAT)
Standard rate: 19.6%
Reduced rate: 5.5% (cases);
Rates on drugs: 2.1%;
Different taxation depending on whether the supply of goods or services;
Opportunity to request a refund of VAT credit;
Some products may be specifically exempt (unfurnished apartment for residential use, …);
Deductibility of VAT on certain expenses (cars, …).
3 – BUSINESSE TAX until 2009 and from 2010 TERRITORIAL ECONOMIC CONTRIBUTION
Business tax is due on the rental value of property;
The rate varies by region, county, municipality. It is determined each year by local authorities;
The annual cost of business tax varies approximately between 2% and 5% of the value of the asset (subject to minimum contributions);
Many exemptions or reductions exist.
For example:
Creation of establishment;
New companies;
Measures taken by local authorities (law on spatial planning);
Cap according to the VA (3.5% of sales);
Specific exemptions for certain properties and for new investments.
The TERRITORIAL ECONOMIC CONTRIBUTION
The economic contribution consists of the territorial land premium enterprise (CFE) and levies on value added of firms (CVAE).
The contribution of land to enterprises is the only part of the old land tax.
The contribution of value-added business is owed by businesses with revenues of the tax period exceeds € 152 000. The rate is fixed at 1.5%. But companies whose turnover is less than € 50 million are eligible for a rebate that varies according to their turnover. In principle, the value used to calculate the CVAE can not exceed 80% of revenue, or 85% of turnover whichever is higher than 7.6 M €.
The economic contribution of territorial subject to a cap based on the value added, the rate is fixed at 3%.
Tax Exemptions
Innovative start-ups:
total exemption from tax on profit for 3 years and 50% reduction for 2 years;
possibility of exemption for 7 years, business tax, or assessment of real estate companies in 2010.
New businesses:
total exemption and partial tax on profits for five years for companies established in some areas of planning;
possibility of exemption, a delay of 2 to 5 years, as regards the business tax, or assessment of real estate companies.
4 – Key TAX CREDITS
Research tax credit
Equal to 30% of R & D not exceeding € 100 000 000; beyond this threshold, the CIR is equal to 5% of R & D
For companies benefiting from the CIR for the first time or not having benefited in the last 5 years (provided you do not have interdependencies with a business that she has received during these 5 years):
Equal to 50% of R & D 1st year
Equal to 40% of R & D in the 2nd year
Training tax credit;
Learning Tax Credit;
Tax credit for marketing expenditure (capped at 40,000 € for corporations);
Family tax credit;
Tax credit corporate philanthropy (60% of the deposit within 5 ‰ of turnover).
5 – OTHER TAXES
Payroll tax payable in case of non-liability for VAT or a liability to less than 90% of revenue (tax rate of between 4.25% and 13.60% of the amount of wages subject to payroll taxes) ;
Tax on company cars;
Social solidarity contribution: 0.16% of turnover. This contribution covers only companies with a turnover of at least € 760 000;
Property tax;
Etc..
6 – INCOME TAX and WEALTH TAX (ISF)
Income Tax:
The French tax resident individuals are liable to income tax on their worldwide income subject to the application of a tax treaty. The tax is per household.
The foreign tax residents may be taxed in France for their French source income subject to the application of a tax treaty.
The income tax is a progressive tax. The rate of the marginal portion is 40%;
The tax return is annual. It is made by the taxpayer, in May of year N for N-1 income.
The tax is payable by two installments (February and May), and the balance must be paid in September (possible monthly payment).
Schedule of the Income Tax Act 2009
Fraction of taxable income (1 unit) Rate
Not exceeding € 5 875 0%
From € 5875 to € 11 720 5.5%
From € 11 720 € 26 030 to 14%
From € 26 030 € 69 783 to 30%
Exceeding € 69 783 40%
Social Contributions: Taxes on income from operations:
CSG: 7.5%
CRDS: 0.5%
Taxes on income replacement:
CSG: 6.6% or 6.2% or 7.5% for early retirement benefits effective date to 10/11/2007
CRDS: 0.5%
Taxing capital income:
CSG: 8.2%
CRDS: 0.5%
Social tax: 2.3%
RSA: 1.1%
TFR:
Individuals are taxed on their assets when the ISF (wealth tax household) exceeds € 790 000 for 2010. The tax assessed on net worth is a progressive tax (the marginal rate: 1.80%).
Individuals tax resident of France shall retain all their assets located in France or abroad except under a tax treaty.
Individuals are not tax resident in France must retain only their assets located in France excluding financial investments except under a tax treaty.
The statement is annual. It must be established before June 15 of each year. Payment is made at the time of filing the declaration.