Tax payments for your company
All entrepreneurs who wants to set up their business in France need to understand the basics of business taxation in France. The most important is to understand that taxation principles and rates are very similar to others european countries.
France is sometimes perceived as a country where taxes are higher than others countries!
Take the time to read this article below, you will hopefully find out that France is an attractive option for developing your activity in Europe.
CORPORATE TAX
The tax is a percentage of your profit. An analysis can be performed but what is important to remember is that in most cases, the 2018 rates are:
– 15% on the profit up to € 38 120
– 28% on the profits above €38 120 and up to €500 000
– 33,33% on the profits above €500 000
In 2020 the 33,33% rate will disappear and the flat rate of 28% will only remain
Thing to remember:
– No profit no corporate taxes!
– Rates are becoming very similar across EU countries
VAT
It is the final consumer who bears the VAT burden, not the companies that contribute to the production of the good or service. The companies act as tax collectors on behalf of the State: they charge their customers VAT and the reversible to the tax department, after deducting the VAT paid on purchases constituting the cost price.
VAT filing is performed annualy, quarterly or monthly by your Chartered Accountant. The frequency is determined by the tax office based on your sales.
2017 rate in France is 20%
SOCIAL CHARGES
As soon as you start to hire employees, you will pay social charges. There are no social charges if you do not have employees working in France.
All of our assists get an access to Chartered Accountant services which include payroll management, employees contract authoring, interface with tax offices and many others services.
PROPERTY TAX
When you set up a company there are no tax if you do not make profit in France except a property tax on the head office address.
Paris is at €80/year compared to an average of €600/year in others cities. Often surprising for our clients who think that Paris is expensive (TRUE !) but not for such taxes as they have so many companies to tax compare to others suburban areas ‘poorer’ cities. Please note that if your annual sales if above several millions, this tax will increase, the figures are for small businesses but rates differentials remain similar.
