Consumption taxes

Nature of the tax

Value Added Tax (VAT)

Tax rate

19.6%

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 about the rates valid in regions outside metropolitan France, click here (in French).

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

Corporate taxes

Tax rate

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

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.

Individual taxes

Tax rate

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. For additional information go to Cabinetgregory.

Special expatriate tax regime

In France there is a special expatriate tax regime. It especially concerns health insurance and complementary retirement pension contributions and the possible exemptions. For further information, consult CIC website.

Double taxation treaties

Countries with whom a double taxation treaty have been signed

France has signed fiscal conventions with over 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

Sources of fiscal information

Tax Authorities

Web portal of the French fiscal administration

Other domestic resources

The fiduciary review
Information on French taxes
CIC Bank information on the French Tax system