France Tax Guide

 France

Currency: EURO

Foreign Exchange Control: None

Accounting Principles: French GAAP. Financial statements prepared annually.

Business Entities: Principally, joint stock companies, limited liability company, commercial partnerships and branch of foreign company.

Corporate Taxation

Residence: If incorporated in France or if managed and controlled in France.

Basis: Residents and non-residents taxed on French-source income. Foreign income generally not subjected to tax.

Rate: 33.33%. New and small businesses may receive lower rates.

Foreign Tax: Domestic law generally does not provide credit for foreign taxes, however most tax treaties provide for tax credits.

Other: R&D tax credits

Tax Year: Tax year is the calendar year but the taxpayer can elect to change their personal year ends.

Personal Taxation

Residence:  Residents taxed on worldwide income, non-residents only taxed on French-source income (resident if domiciled in France).

Rate: Progressive up to 45% plus special social security payments amounting to a maximum of 15.5%

Capital Gains: Disposal of movable assets taxed as ordinary income; disposals of immovable property taxed at 19%.

Other: Stamp duty: nominal rates

Real property: tax based on the rental value of the property.

Inheritance tax: ranges from 5% to 40%.

Wealth taxes are in place and progressive depending on income and the type of asset.

Social security: employee 20%, employer varies

VAT: Standard rate 20%

Member Firm: Eurocad

Email:  Andre Damiens: a.damiens@eurocad.fr