In France, tax amounts on income are paid at the same tax rate whether a person is employed or self-employed.
However, if a person operates a small business or is starting a business and anticipates the turnover to be low, they can elect to operate as a “micro –enterprise”.
This is an alternate tax regime available to businesses whose turnover is below certain amounts and offers attractive tax breaks while the business is “small”.
In addition, self-employed taxpayers in France can obtain a 20% reduction on taxes by joining a centre de gestion.
The corporate tax rate in France is levied at two rates, being
- 15.45% on the first €38,120 of taxable income
- 34.33% on taxable income above €38,120
There are different tax regimes that a company may elect to participate in.
For example, a company may choose to be dealt with under régime simplifié (d’imposition) in which certain expenses may be assumed and the declaration and payment procedures are simplified or be treated under régime réel (normal), where a company declares its actual expenses and income actual and pays its tax liability accordingly.
In addition, the French Government introduced Contribution Economique Territoriale (CET) in January 2010.
The CET is a local tax implemented by the departmental and regional councils on business to assist in the funding of local services as well as the Chambres de Commerce. However, new companies do not have to pay tax in their first operational year and pay only 50% of the tax rate in their second year.
Our Paris E Team member is a highly regarded and trusted tax professional who can assist all l expats with all their tax planning and compliance needs whilst moving to and residing in Paris.
Spira Twist & Associates
With over 30 years of experience up their sleeves, Spira Twist and Associates bring their expertise in assisting France based US and UK companies with an end to end business services.
The firm’s competency and significant exposure to international standards enable them to deliver exceptional service in any business phase.
From the early stages of business set up to business accounting, tax compliance in France and payroll solutions, to ensuring growth for your business, you can count on Spira Twist and Associates to provide the highest level of service.
Please refer to the contact details below to know more about Spira Twist and Associates.
Contact Person: David Spira
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