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.
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.
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: email@example.com