France Income Tax Rate, Corporate Tax 2017, 2018France Income Tax Rate  for Financial Year 2018-2019. French Tax Rates  for salaried Individuals, Resident, Non Resident and Corporate / Companies.

 

 

French Personal Income Tax Rate for income earned in 2018

Tax Bank Tax Rate
Upto Euro 9,807 0%
Euro 9,807 to Euro 27,086 14%
Euro 27,086 to Euro 72,617 30%
Euro 72,617 to Euro 1,53,783 41%
Above Euro 1,53,783 45%

 

Allowances against employment income

- 10% of Salary as General Deduction

- 12,305 Euros is the maximum amount of deduction

- Contributions to pension scheme is subject to upper limit

 

Tax Payment Due Dates

- 15th February : First Payment

- 15th May : 2nd Payment

- September : Final Payment

 

Residential Status of Tax Payer

If any one of the following conditions are satisfied, the tax payer is deemed to be the resident of France:

- Spend 183 days or more each year in France;
- Principal business activity in France;
- Habitual residence is in France;
- centre of economic interests is in France. This would be the case if the taxpayer has their principal investments in France, manages their business from France or the majority of their income is from French sources.

 

Liability of Tax Resident in France

 As a French tax resident, the taxpayer is liable to:
- French income tax on their worldwide income and capital gains.

- Where the taxpayer is also taxed in another country on this income, double tax relief is taken;
- French Wealth Tax on their worldwide net assets;
- French Inheritance Tax on assets that they bequeath on death or gift during their lifetime.

- Where the taxpayer is also domiciled in another country for the purposes of this tax, double tax relief is taken.

 

Corporate Income Tax Rate in France for Financial Year 2018-2019

Ordinary Corporate Income Tax Rate is 28% on Profit of large companies

Industry and Qualifying Conditions Tax Rate
As of 1st January 2018 companies whose Profit of upto 500,000 Euros 28%
Profit above 500,000 Euros 33.33%
Small-medium companies turnover less than 7.63 Million Euros - For first 38,120 Euros of Profit

To qualify for this the the capital of company should be fully paid up and 75% of the share capital should belong to physical persons.

15%
Supplementary tax contribution (surtaxe) that applies to companies with turnover above 250 Million Euros  

 

VAT in France

Standard rate of VAT in France is 20%, which is a general rate applies to supply of goods and services.

5.5% or 10% of VAT applies to certain Goods and Services:

- Food Products

- Passenger Transport

- Hotels, Pensions

- Cultural activities like books, cinema, theatre

- Certain works carried out in the main residence

2.1% Special Rate applies to limited scope of goods and services

 

Capital Gain Tax in France

Exemption - Sale of main residence of resident

Deductible Cost

- Purchase cost + agency, notary cost etc on Purchase

- If the above amount is not calculated a fixed rate of 7.5% of the purchase cost

- Improvement and renovation cost, if the invoice is available

- If invoice is not available 15% of purchase cost is allowed if the sale took place after 5 years of acquisition

There is surcharge for Capital Gains over 50,000 Euros in the sale of Property

Capital Gain Euro Additional Tax Rate
50,000 to 60,000 2% Less Marginal Deduction
60,000 to 100,000 2%
100,000 to 110,000 3% Less Marginal Deduction
110,000 to 150,000 3%
150,000 to 160,000 4% Less Marginal Deduction
160,000 to 200,000 4%
200,000 to 210,000 5% Less Marginal Deduction
210,000 to 250,000 5%
250,000 to 260,000 5% Less Marginal Deduction
Above 260,000 6%

 

Residents in France

- 19% tax on the resulting gain

- 15.5% is Social Charges

 

 Withholding Tax for Non Residence

- 19% for Residents of European Economic Area

- 33.33% for Others

 

Wealth Tax in France

Taxation of tax payers net wealth in France as at 1st January 2018

Net Wealth of Tax Payers in Euros Tax Rate
800,000 to 1,030,000 0.50%
1,030,000 to 2,570,000 0.70%
2,570,000 to 5,000,000 1%
5,000,000 to 10,000,000 1.25%
Above 10,000,000 1.50%%

 

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