France is sometimes perceived as a country where taxes are higher than other countries, but its taxation principles and rates are very similar to others European countries.

CORPORATE TAX

This tax is a percentage of your profit. The current rates are:

• If your annual sales are below 10M€/year:

• • For your taxable profits between 0€ and 42500€ will be taxed at a 15% rate;
  • For your taxable profits above 42500€ will be taxed at a 25% rate.
• If your annual sales are above 10M€/year, the applicable rate will be 25% on the taxable profit.

Thing to remember: no profit, no corporate taxes!

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. 

The applicable rates depend on the types of goods & services.

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.

We can provide to our clients the services of a Chartered Accountant. It includes payroll management, employees contract authoring, interface with tax offices and many others services.

PROPERTY TAX

When you set up a company there are no corporate tax if you do not make any profit, however there is a property tax (“CFE”) on the head office address.

The city of Paris has one of the lowest rate on the CFE. To know more, please visit the government’s official page of information of the subject.

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.