| 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.
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 |
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
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
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%% |