France

France’s standard corporate income tax rate is 25%. Qualifying small corporations may benefit from a 15% reduced rate on the first EUR 42,500 of taxable profits, subject to the applicable conditions. Estimated CIT payments are generally made in four instalments during the year, with the annual return typically due by the end of May for fiscal years ending on 31 December.

The headline personal income tax rate in France is 45%, along with additional surtaxes and social surcharges. PIT returns are generally due by mid-May, with final payments due by September 15th. For PIT estimated payments, taxpayers can choose between two instalments on February 15th and May 15th or monthly instalments, with payments made on the 15th of each month from January to October.

VAT in France is imposed on goods and services at a standard rate of 20%. Some goods, such as certain medicines and passenger transport services, are taxed at a reduced rate of 10%, while specific other products like food and books are taxed at a rate of 5.5%. Certain specialized services are subject to a 2.1% VAT rate. Business-to-business (B2B) services are generally taxed at the customer’s location, while business-to-consumer (B2C) services are taxed based on the supplier’s location. VAT applies to registered taxable persons, both full and partial.

France imposes a 3% real estate tax on properties within the country, calculated annually based on the fair market value of the property. All entities in the ownership chain are liable for this tax. There are exemptions for entities where French assets make up less than 50% of total assets, entities listed on regulated markets, and specific pension funds or charities with limited holdings in French real estate. Foreign entities may also be exempt, provided they meet specific criteria.

French companies that do not meet the VAT threshold of 90% annual turnover are subject to a payroll tax. The standard payroll tax rate is 4.25%, but higher rates apply to larger wages. Wages ranging from EUR 8,020 to EUR 16,013 are taxed at 8.5%, and wages exceeding EUR 16,013 are taxed at 13.6%. This tax is assessed on the portion of wages above the standard thresholds, with an aim to balance out VAT recovery for companies below the VAT threshold.