This special French Tax Update provides an overview of the main
tax rates applicable in France. The figures contained in the charts
below are provided for information purposes only, are current as at
August 31, 2015, and may be subject to specific conditions,
limitations or specific regimes.
Tax
|
Rate
|
Comments |
Corporate
Income Tax (impôt sur les sociétés,
CIT) |
33.33% |
Standard rate |
15% |
Reduced rate for SMEs on
the first EUR 38,120 of taxable profits |
15% |
Reduced rate applicable
to royalties derived from the sale of property rights or licence
fees, patentable inventions, etc. |
0% |
Reduced rate applicable
to 88% of the amount of the capital gains arising from the sale of
substantial equity interests |
Social Surcharge on CIT
(contribution sociale sur l'impôt sur les
sociétés, SC) |
3.3%
|
Applicable where the CIT
liability exceeds EUR 763,000 (except for SMEs whose turnover is
less than EUR 7,630,000) |
Temporary Surcharge on
CIT (contribution exceptionnelle sur l'impôt sur les
societies, TS) |
10.7% |
Applicable where the
turnover exceeds EUR 250 million (should be repealed in 2017) |
Maximum Effective CIT
rate |
38.1% |
Where both the SC and
the TS are applicable |
Contribution on
Distributed Income (contribution additionnelle sur les revenus
distributes, C3S) |
3%
|
Distributions of shares
are inter alia exempted |
Corporate Social
Solidarity Contribution (contribution sociale de
solidarité des sociétés,
C3S) |
0.16%
|
Based on the turnover
(to which may be applied a EUR 3,250,000 deduction) |
Business Premises
Contribution (cotisation foncière des entreprises,
CFE) |
26%
|
Nationwide average rate
(applicable rate voted by local authorities and may greatly vary);
basis is the rental value of premises subject to Property Tax |
Contribution on Business
Value Added (contribution sur la valeur ajoutée des
entreprises, CVAE) |
1.5%
|
Applicable where the
turnover exceeds EUR 152,000 |
Payroll Tax (taxe
sur les salaires) |
4.25-20% |
Levied on salaries paid
by companies that are not viable to VAT for at least 90% of their
turnover |
Apprenticeship Tax
(taxe d'apprentissage) |
0.68%
|
Levied on salaries paid
by companies |
Additional
Apprenticeship Contribution (contribution supplémentaire
à l'apprentissage) |
.05
-0.6% |
Levied on salaries paid
by companies |
The rates below are subject to any reduction or exemption
provided by an applicable double tax treaty, if any.
Tax
|
Rate |
Comments |
Withholding Tax on Dividends
|
30% |
Standard rate |
21% |
Distributions to
qualifying EEA individuals |
15% |
Distributions to EEA
non-profit organizations |
0%
|
Distributions to
qualifying EEA companies or qualifying EU investment funds |
75%
|
Payments to a
non-cooperative jurisdiction |
Withholding
Tax on Interest |
0%
|
General exemption |
75%
|
Payments to a
non-cooperative jurisdiction |
Withholding
Tax on Royalties |
33.33%
|
Standard rate |
0%
|
Royalties paid to
qualifying EU companies |
75%
|
Payments to a
non-cooperative jurisdiction |
Withholding Tax on
Salaries, Wages, Pensions and Stock-Options |
0-20%
|
In principle creditable
against French personal income tax |
Withholding
Tax on Qualified Founder Warrants (BSPCEs) |
19%
|
Increased to 30% where
beneficiary has been employed by the issuing company for less than
three years |
75%
|
Payments to a
non-cooperative jurisdiction |
Withholding
Tax Relating to Non-Commercial Activities |
33.33%
|
Standard rate |
15%
|
For amounts paid for
sporting or artistic performances provided or used in France |
75%
|
Payments to a
non-cooperative jurisdiction |
Withholding
Tax on Branch Profits |
30%
|
Standard rate |
0%
|
For branches of EU
companies |
75%
|
For branches of
companies located in a non-cooperative jurisdiction |
Tax
|
Rate
|
Comments |
Personal
Income Tax (impôt sur le revenu,
IRPP) |
0%
|
Taxable income not
exceeding EUR 9,690 |
14%
|
Taxable income between
EUR 9,690 and EUR 26 764 |
30%
|
Taxable income between
EUR 26,764 and EUR 71 754 |
41%
|
Taxable income between
EUR 71,754 and EUR 151 956 |
45%
|
Taxable income higher
than EUR 151,956 |
Exceptional Contribution
on High Income (contribution exceptionnelle sur les hauts
revenus) |
3-4%
|
When taxable income
exceeds EUR 250,000 for single taxpayers and EUR 500,000 for joint
taxpayers |
Social Contributions on
Employment Income (CSG and CRDS) |
8%
|
Levied on employment and
similar income |
Social Contributions on
Passive Income (CSG, CRDS and other social levies) |
15.5%
|
Levied on rental income,
dividends, interest, and capital gains |
Wealth Tax
(impôt de solidarité sur la fortune,
ISF) |
0-1.5%
|
Applicable where an
individual's worldwide net worth is in excess of EUR
1,300,000 |
Inheritance
and Gift Tax Between Parent and Children (droits de succession
et de donation en ligne directe) |
5%
|
Taxable amount not
exceeding EUR 8,702 |
10%
|
Taxable amount between
EUR 8,072 and EUR 12,109 |
15%
|
Taxable amount between
EUR 12,109 and EUR 15,932 |
20%
|
Taxable amount between
EUR 15,932 and EUR 552,324 |
30%
|
Taxable amount between
EUR 552,324 and EUR 902,838 |
40%
|
Taxable amount between
EUR 902,838 and EUR 1,805,677 |
45%
|
Taxable amount higher
than EUR 1,805,677 |
Inheritance and Gift Tax
Between Unrelated Persons (droits de succession et de
donation) |
55 –
60% |
Applies to the taxable
amount higher than EUR 1,594 |
Specific Trust Tax
(prélèvement spécifique sur les
trusts) |
1.5%
|
Penalty applied where
assets held into a trust arrangement are not included in the
settlor's personal wealth tax return |
Tax
|
Rate |
Comments |
Registration Duties on
Transfers of Business/Goodwill (cessions de fonds de commerce et de
clientele) |
0-5%
|
3% of the fraction of
the transfer price between EUR 23,000 to EUR 200,000; 5% on the
fraction exceeding EUR 200,000 |
Registration Duties on
Transfers of Shares of a Stock Company |
0.1%
|
Do not apply inter alia
to share buy-backs or acquisitions of shares subject to FTT |
Registration Duties on
Transfers of Shares of a Partnership |
3%
|
Duties decreased by an
allowance that is equal, for each share, to EUR 23,000 divided by
the total number of shares |
Registration Duties on
Transfers of Shares in Real Estate Companies |
5%
|
Based on the price of
the shares transferred |
Registration Duties on
Transfers of Real Estate Assets |
5.09 –
5.81% |
To which should be added
(i) the notary fees (usually up to 0.825%) and (ii) the 1%
registrar fees (contribution de sécurité
immobilière) |
Liquidation Duties
(droit de partage) |
2.5% |
Based on the net asset
value |
Tax
|
Rate |
Comments |
Property Tax (taxes
foncières) |
20%
|
Nationwide average rate
for developed lands (applicable rate voted by local authorities and
may greatly vary) |
Tax on Real Estate
Assets (taxe sur la valeur vénale des immeubles |
3%
|
Assessed on the fair
market value of French real estate assets; many exemptions are
available |
Withholding
Tax on Real Estate Capital Gains realized by non-resident
individuals |
19%
|
Applies on capital gains
deriving from a transfer of French assets realized by a
nonresident |
75%
|
Gains realized by a
resident of a non-cooperative jurisdiction |
Annual Tax on Offices
(taxe annuelle sur les bureau en Ile-de-France) |
EUR 0.66 –
17.08 per sqm |
Amount depends on the
nature and location of the premises |
Tax on Office
Constructions (redevance pour création de bureaux en
Ile-de-France) |
EUR 32.18
– 368.95 per sqm |
Amount depends on the
nature and location of the premises |
Tax
|
Rate
|
Comments |
Financial
Transactions Tax (taxe sur les transactions financières,
FTT) |
0.2% |
Applies to certain
acquisitions of shares issued by a French company with a market cap
of over EUR 1 billion; several exemptions are available |
0.01% |
Applies to
high-frequency trading operations of securities on the amount of
cancelled or modified orders above a certain ceiling |
0.01% |
Applies to certain
purchases by French residents of credit default swaps on bonds
issued by an EU member state that are not acquired for hedging
purposes |
Systemic Risk Banking
Tax (taxe bancaire de risque systèmique |
0.329% |
Applies on the minimum
required equity of French banks and financial institutions |
Insurance Contracts Tax
(taxe sur les conventions d'assurance |
7-30% |
Rate depends on the type
of insurance contract and premium |