Corporate Tax in France

Overview by Globlatrade.net:
Tax Base For Resident and Foreign Companies
Foreign companies are taxed on the profits they make in France.
 

Tax Rate

Normal corporate tax rate 33,1/3%
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% 33.1/3% + a social contribution of 3.3% of the corporate tax payed
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. The rate is 33.83%.
Capital Gains Taxation
Since January 1, 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
From January 1st 2010 the Professional Tax was replaced by a Territorial Economic contribution levied for the profit of territorial governments. The Contribution Economique Territoriale ( CET) is a local tax imposed by the departmental and regional councils on businesses to assist in the funding of local services and the Chambres de Commerce/Metiers.
A Flat rate annual tax (IFA) is also levied on companies.
 

Country Comparison For Corporate Taxation

  France OECD United States Germany
Number of Payments of Taxes per Year 7.0 14.2 11.0 16.0
Time Taken For Administrative Formalities (Hours) 132.0 199.3 187.0 215.0
Total Share of Taxes (% of Profit) 65.8 43.0 46.8 48.2

Source: Doing Business

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

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Experts Views (2)
  • Employment Data

    JPA International

    A synthetic and ready to print leaflet about the social regulation and contributions in force in France in 2013

    JPA on 19 Jun 2013 related to Corporate Tax in France

  • 2013 Tax Data

    JPA International

    A synthetic ready to print leaflet about the main taxation rules in force in France in 2013

    JPA on 19 Jun 2013 related to Corporate Tax in France

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  • JPA

    Audit, Accountacy, Tax, France