Corporation tax in France
Today we are going to delve into the exciting world of Corporation tax in France, a topic that has captured the interest of many people over the years. Since its discovery, Corporation tax in France has been the subject of debate, research and admiration by experts and hobbyists alike. In this article, we will explore the different aspects that make Corporation tax in France such a fascinating topic, from its history to its impact on today's society. Through detailed analysis and concrete examples, we will discover why Corporation tax in France deserves our full attention and reflection. Get ready to immerse yourself in the intriguing world of Corporation tax in France and discover everything this theme has to offer!
Corporate tax in France deals with the tax payable in France on the profits earned by companies. In 2021, the corporate tax rate (Impôt sur les Sociétés) is 26.5% for companies with a turnover of less than €250 million and 27.5% for large companies (turnover at or above €250 million). In 2022 the standard corporate tax rate will be lowered to 25% for all companies. Net corporate tax revenues in 2016 amounted to 30 billion euros (after tax credits & deductions).
Location of profits
A company is subject to French corporate tax on profits generated in France, in addition to any profit allocated to France by virtue of international tax treaties, after taking into account tax deductible costs.
Tax base
 | This section is empty. You can help by adding to it. (December 2017) |
Rate
The 2017 French corporate tax rate was 15% of the taxable income up to and including €38,120, 28% up to €75,000 and above which the rate is 33.3%. By 2020, the whole taxable income of all companies will be taxed at 28%.
On 7 November 2017 the French National Assembly approved a new corporate tax exclusively for the year 2017.
Business with more than €1 billion in sales a year are subject to pay a tax rate with 38.3% instead of 33.3%. If a firm makes more revenue than €3 billion the rate will be 43.3%.
Tax credits
In 2012 a new tax credit was introduced to make France more competitive. Companies get a tax credit of 7% of total wage & salary costs up to a limit of 2.5 times the minimum salary (in 2017 the minimum salary was €1,460). The effect is to substantially reduce the effective rate of corporation tax. The tax credit amounts to 19 billion euros (about 40% of gross corporate tax take).
Allowances
Certain items of income are exempt from corporate tax:
- Research Tax Credit
- Innovative start-ups
- New Business
- Higher depreciation allowance scheme
See also
References
- ^ "Businesses: the main tax measures for 2021". economie.gouv.fr. Retrieved 7 May 2020.
- ^ "Budget statistics" (PDF). performance-publique.budget.gouv.fr. Archived from the original (PDF) on 11 October 2017. Retrieved 15 February 2020.
- ^ "Gegen Neuverschuldung: Frankreich beschließt Sondersteuer für Milliarden-Konzerne". Faz.net – via www.faz.net.
- ^ "Tax incentives". impots.gouv.fr. 23 September 2016.
- ^ "The CICE gains momentum". Gouvernement.fr.