| France Income Tax Rates France individual income tax rates for 2009:
Up to €5,852: 0%
Between €5,853 - €11,673: 5.5%
Between €11,674 - €25,926: 14%
Between €25,927 - €69,505: 30%
Above €69,505: 40%
If the tax due is less than €862, a tax credit is available, known as the Décote. If you receive a retirement pension, disability pension, child support and alimony, the taxable base will benefit from a 10% deduction of a minimum of €367 and a maximum of €3,592 per household.
For those over the age of 65, there is an extra tax-free allowance of €2,266 if total income does not exceed €13,950 and of €1,133, if total income is between €13,950 and €22,500
Special expatriate tax regime: Yes. It concerns especially health insurance and complementary retirement pension contributions and the possible exemptions.
Tax year: The tax year begins on January 1st and ends on December 31st the same year.
France Corporate tax Tax rate for resident companies: The standard corporate tax rate amounts to 33.33%. A 3% surtax is imposed on the gross corporate income tax. Consequently, the effective tax rate is 33.83%.
Companies with an annual turnover exceeding 7,630,000 EUR, and those which the share of individuals in their capital is lower than 75% are also assessed on a social security surtax of 3.3%.
Companies whose annual turnover is below 7,630,000 EUR or for which at least 75% of the company is owned directly or indirectly by individuals can benefit from a reduced rate of 15% up to 38,120 EUR.
Tax rate for foreign companies: Foreign companies are taxed on the profits they make in France.
Main allowable deductions and tax credit: Expenses are deductible for depreciation or amortization, reserves, rents for premises and equipment, wages, etc. Tax credit exists for apprenticeships especially.
Tax rate on long-term capital gains: Long-term capital gains derived by companies are zero-rated since January 1st 2007.
System governing groups of companies and dividends paid by subsidiaries to their parent companies: Dividends paid to non-resident companies are liable to a withholding tax of 25% or 0%, depending on international agreements.
Tax rate on branches: Branches are subject to general corporate taxation rules.
Impôt sur la Fortune (France wealth tax) bandsLess than €790,000: 0%
€790,001 to €1,280,000: 0.55%
€1,280,001 to €2,520,000: 0.75%
€2,520,001 to €3,960,000: 1.00%
€3,960,001 to €7,570,000: 1.30%
€7,570,001 to €16,480,000: 1.65%
Above €16,480,000: 1.80%
France Value Added Tax (VAT) Tax rate: 19.60%
Reduced tax rate: Reduced rate of 5.5% for food, agricultural products, water, books and magazines, hotel rooms and medicines.
Reduced rate of 2.1% for certain products reimbursed by the Social Security. France Inheritance Tax Rates (per beneficiary)Between Spouses
Further to the Loi No. 2007-1223 inheritance tax between spouses was abolished with effect from 22 August 2007.
Between parents and children
Less than €156,357: 0%
The next €7,922: 5%
€7,922 to €11,883: 10%
€11,883 to €15,636: 15%
€15,636 to €542,036: 20%
€542,036 to €886,020: 30%
€886,020 to €1,722,041: 35%
Over €1,722,041: 40%
Between siblings
Less than €15,636* 0%
The next €23,975 35%
Over €23,975 45%
* Totally exempt where a sibling is single, divorced or widowed, aged over 50 or incapacitated and has been living with the deceased for 5 years.
Between Couples with a PACS*
Further to the Loi No. 2007-1223 inheritance tax between PACS couples has been abolished with effect from the 22 August 2007.
* "The Pacte Civil de Solidarité"
Between other relatives (to 4th degree)
Less than €7,818: 0%
Over €7,818: 55%
Between unrelated persons
Less than €1,564: 0%
Over €1,564: 60%
France - Other Important TaxesContractual Imposition Annual (IFA)
All the companies liable to IS are subjected to a contractual imposition called Contractual Imposition Annual (IFA). It is an imposition distinct from the IS which takes into account only the sales turnover and this whatever the benefit or deficits carried out by the company. As from 2006, the IFA is a deductible load fiscally and does not charge itself any more to the amount of the IS due.
Progressive tax rate from 0% to 110,000 EUR.
Business activity tax
This rate is assessed on the value of the fixed assets. It varies and is voted by the local authorities. The national average rate is 23.16%.
Patrimonial tax (ISF)
This tax applies for the value of the patrimony of the individuals established in France or who own some property within if this property value is superior to 760,000 EUR (01/01/2007). The patrimony tax rate varies from 0% to 1.80%.
Succession and Donation duties
5% to 60%
Local taxes
Varies regarding the localities
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