Taxes - Accounting

France

Nature of the tax: Value Added Tax (VAT)
Tax rate: 19.60%
Reduced tax rate: Reduced rate of 5.5% for food, agricultural products, water, books and magazines, hotel rooms and medicines.
Reduced rate of 2.1% for certain products reimbursed by the Social Security.
To find out the rates valid in regions outside metropolitan France, click here.
Other consumption taxes: Domestic consumption tax on petroleum products (TIPP)
Domestic consumption tax on natural gas (TICGN)
Domestic consumption tax on coal and lignite
Domestic tax on tobacco (snuff and for smoking), cigars and cigarettes.
Domestic consumption tax on beer

Normal corporate tax rate	33.3% + social surtax of 3.3% on the whole of one's taxable profits. The effective tax rate is 33.83%
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%	Subject to an extra social tax of 3.3%.
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.
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: Professional Tax
Flat rate annual tax (IFA)

Allowable deductions and tax credit: Child care, consumer credit, tax credit for young people under 26 who take a job in certain industrial sectors or geographical areas in difficulty, etc.
Special expatriate tax regime: Yes. It especially concerns health insurance and complementary retirement pension contributions and the possible exemptions. For further information click here.

Countries with whom a double taxation treaty have been signed: France has signed fiscal conventions with 112 countries in the world.
Withholding taxes: Dividends: 25%, Interest: 18%, Royalties: 33^1/3 %
Bilateral agreement: France and Tunisia are bound by a double taxation treaty: yes

Signed	Ratified	Enforced
28/05/1973	Law 74-38 of 22/05/74	01/03/1975

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Tax year: From January 1 to December 31 .
Accounting standards: Official accounting plan (PCG)
Accounting regulation bodies: Parliament
CNC
Accounting reports: Annual accounts: the balance sheet, the profit and loss account and the notes to the accounts.
The annual report
The statement of source and application of funds (compulsory for large companies)
Publication requirements: There are three levels of reporting: The basic system (Normal), an abridged system (for small companies), a developed system. They depend on the legal form and size of the companies (defined in relation to the total of the balance sheet, the turnover and the number of employees).
The reporting is annual, except for listed companies for whom reporting is quarterly.
Professional accountancy bodies: OEC
CNCC
IFAC
Certification and auditing: KPMG
Ernest & Young
PricewaterhouseCoopers
Accounting news: France accounting news