The various tax rates
Corporate income tax depends on company turnover. An enterprise with a turnover of over 7 630 000 EUR is taxed at 33% + 3.3% of the amount paid as a share of social security contributions. For companies with a lower turnover, there is a reduced rate of 15% for the first segment of taxable income, with a ceiling of EUR 38 120. Capital gains are not taxed. Deductions and tax credits are achievable through depreciation, provisions, real estate rents, wages or training grants.
VAT is 19.6% with several reduced rates (7%, 5.5% or 2.1%) according to goods and services. Meanwhile, inhabitants’ income tax is progressive:
|Individuals’ (EUR) income||Tax rate|
|0 to 5 963||0%|
|5 964 to 11 896||5.5%|
|11 897 to 26 420||14%|
|26 421 to 70 830||30%|
|70 831 and above||41%|
Childcare income and consumer credit is tax-deductible, and people accepting a job in an area in difficulty may be given a tax credit.
The French fiscal year runs from 1 January and 31 December, since accounting is regulated by the General Accounting Plan. Companies must keep: a balance sheet, a profit and loss account, an appendix, a management report and a cash flow statement (for large companies). These documents must be published annually, except for quoted companies, which must make quarterly publications.
An external auditor must also carry out an annual audit of the company.