In general, the tax system in France is determined by the votes of the French Parliament, which determine the types of taxes to be levied and the tax rates to be applied. The taxes are then collected by the central government, local governments and the Social Insurance Association (ASSO). All persons who have their tax residence in France are subject to French tax, regardless of whether they are natural or legal persons living in France or only having their residence, main residence, work or economic interests in France - all of them are treated as taxable. In addition, a person who is resident for tax purposes in France is also subject to tax on their world income despite their nationality.
There are several types of taxes in the country such as property taxes on real estate, capital gains taxes payable on the sale of assets, taxes on the sale of buildings (in addition to local taxes), inheritances, gifts, business transfers, and vehicle registrations (Total taxes should not exceed 75% of income) as well as inheritance and gift taxes that apply to gifts and inheritances.
Income taxation in France
Income taxes in France include corporate income tax, natural person income tax, social purpose tax which is a calculated tax on total income available to natural persons in a year and industrial and commercial profits, land income, non-commercial and subject to agricultural profits, salaries / wages, pensions / annuities, movable income, capital gains. These taxes are usually payable in the year after the income was earned, by filing a French tax return showing the total taxable income. The declaration should be submitted within the normal submission deadline.
Income tax
Applies to all income generated during an individual business activity in the country. However, taxpayers whose personal net income does not exceed € 7,920 are exempt from income tax. It is calculated according to the total household income, which is evenly distributed among each household member.
Corporation tax
This type includes the annual tax levied on corporations and other commercial entities and can be applied to about 1/3 of French companies at a standard rate of 33.3% and generally based on the company's turnover.
Capital gains tax
Capital gains tax is payable on the sale of land, buildings and shares. This includes 19% capital gains tax and 15.5% social security contributions, which corresponds to a total of 34.5%. In addition, there is an additional tax on large profits. It includes 5 different French tax rates, depending on the amount of profit made.
Residence tax
This tax applies to all buildings that have extras such as gardens, garages, private parking spaces, etc. and is payable by anyone who owns a residential unit.
Property tax
Property tax on developed land is levied on land built in France. Taxable properties include all permanent structures, i.e. buildings (apartment blocks, residential buildings, workshops, warehouses, etc.). The tax base is 50% of the imputed rental value of the building (i.e. the value determined by the tax administration) and the land / site value. There are many exceptions and exceptions. In 2005 the product was worth € 17.73 billion.
Occupational tax
This tax applies to self-employed persons in France, the amount of which is obtained by multiplying the taxable net by the rates approved by the respective local beneficiaries (municipalities and organizations) within the limits set by national legislation.