French taxes
France is one of the largest European countries, which is famous not only for its haute cuisine, fashion and recognizable world attractions, but also for favorable conditions for doing business in a variety of areas of the economy and social sphere.
The capital of the state is Paris. Population: 63 people. France is a well developed country. Its economy is stable, and therefore it is here that many citizens of other countries seek to open their own companies and do business. But behind all this wealth, stability and effective social protection system are quite high taxes.
Taxation in France not much different from the fiscal system operating in the European Union, but it has some distinctive features:
- 90% of the country's budget consists of tax payments;
- municipalities can independently manage funds received in the form of taxes;
- most of the budget revenues are indirect taxes;
- All citizens of the country pay taxes - in France there are no tax breaks, but reduced rates apply.
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French taxes for legal entities
French taxes for legal entities are represented by the following types of fiscal fees:
- Income tax.
The portion of income that is reduced by expenses in the form of contributions to insurance and pension funds, and contributions for membership in public organizations is subject to taxation.
Only profits derived from commercial activities carried out in France are taxed. The basic rate is 33,33%, with a mandatory insurance contribution of 3,3%.
For companies with an annual turnover of less than 7,6 million euros and profits below 38 euros, the income tax rate is reduced to 130%. In France, there are many benefits for this type of taxation, thanks to which even newly opened companies can firmly establish themselves here until they begin to operate at full capacity.
In 2021, France introduced an economic contribution tax (CET). It includes:
- CVAE fee - for business development, the amount is determined by local authorities. The maximum rate is 1,5%;
- land tax and commercial real estate tax CFE - payments for owning buildings or renting them out. The rate is set by local governments.
- VAT.
The standard value added tax rate is 20%, and there are also several intermediate rates:
- 22% on luxury goods;
- 10% on food and some types of services;
- 5,5% on medical products, books;
- 2,1% for medical services, medicines.
- Dividend tax.
The company's income from which dividends will be paid is subject to tax. For dividends paid to individuals, the rate ranges from 0 to 45% (depending on the amount of income). For payments to legal entities, the rate is: to a non-resident - 30%, to a company that is not one of the cooperating jurisdictions - 75%.
