National regulation and international agreements

Consumption taxes

Nature of the tax

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.
To find out the rates valid in regions outside metropolitan France, click here.

Other consumption taxes

Domestic consumption tax on petroleum products (TIPP)
Domestic consumption tax on natural gas (TICGN)
Domestic consumption tax on coal and lignite
Domestic tax on tobacco (snuff and for smoking), cigars and cigarettes.
Domestic consumption tax on beer

Corporate taxes

Tax rate

Normal rate	:	33.3% + social surtax of 3.3% on the whole of one's taxable profits.
Companies with a turnover of more than 7 630 000 EUR , companies where the share of individuals in the capital does not go over 75%	:	subject to an extra social tax of 3.3%.
Companies with a turnover of less than 7 630 000 EUR and those where the share of individuals in the capital goes over 75%	:	reduced rate of 15% on the first band of taxable income within the limits of a total amount of 38 120 EUR.

Tax rate for foreign companies

Foreign companies are taxed on the profits they make in France.

Capital gains taxation

Since 1 January 2007, the long term capital gains made by companies subject to corporate tax (IS) are no longer taxed.

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.

Other corporate taxes

Professional Tax.
Flat rate annual tax (IFA)

Individual taxes

Tax rate

Personal income tax (IRPP)

:

Progressive rate up to 40%.

Allowable deductions and tax credit

Child care, consumer credit, tax credit for young people under 26 who take a job in certain industrial sectors or geographical areas in difficulty, etc.

Special expatriate tax regime

Yes. It concerns especially health insurance and complementary retirement pension contributions and the possible exemptions. For further information click here.

Double taxation treaties

Countries with whom a double taxation treaty have been signed

France has signed fiscal conventions with 112 countries in the world.

Whithholding taxes

Bilateral agreement

Sources of fiscal information

Tax Authorities

The fiscal administration

Other domestic resources

The fiduciary review

Information on French taxes