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| Overview of the main taxes in France
VAT The VAT form has to be filled between the 15th and the 24th of each month with payment (the exact day is determined by the Tax Administration depending of the sort of company and the first letter of its name). If the VAT form shows a Credit, the French Company can ask a refund of the VAT credit each month of January, April, July, October for the Credit of the previous month. 1/For the first Credit, the Tax Administration asks for a sheet with columns – Name and address of the suppliers, date and amount of invoices, and VAT on the invoice – to justify the VAT deducted 2/ If the Tax Administration feel it necessary, they can audit in the company the accounting and the invoices 3/ There is a specific procedure for Companies with exportation activities so they can apply for a monthly VAT refund. The monthly VAT refund is limited to a maximum of Sales exported x VAT normal Rate (i.e. Sales Exported x 19.6%). The VAT exceeding this monthly limit could be refunded every 3 months following the procedure described above. VAT rate in France is 19.6% for general sales and services (defined as the EC standard rate). A rate of 2.1% applies for food, press and some primary goods (defined as the EC lower rate). Specific rates applies to French overseas departments.
CORPORATE INCOME TAX Each 15th of march, 15th of June, 15th of September and 15th December the Income Tax has to be paid. The payment is based on a fourth of the income tax of the previous year. 105 days after the end of the fiscal year of the company – usually December 31st – the Income tax has to be calculated and paid. After the 3rd year of existence, a Company has to pay a minimum Income Tax, even if the Company is in the red. The minimum income Tax is depending of the turnover and has to be paid on the 15th of march. The common rate for the income tax is 1/3.
TAXES BASED ON WAGES On the 28th of February has to be declared and paid the following taxes based ont the wages of the 1st of January to the 31st of December of the previous year : - taxe apprentissage (training tax) : 0.68% of the wages - formation professionnelle continue (continuous training tax) : 0.25% if the number of salaries is under 10, 1.5% if over. Before the 31st of Decembre if the Company has more than 10 salaries a “Participation à l’effort construction” (Real Estate Tax) of 0.45% of the wages of the previous year. The cost of salaries is increased by 25% (low qualification and wages) to 45% (high wages and executives) of health insurance and retirement insurances. Theses insurances are a mix of compulsory payments and extra insurances chosen by the company.
OTHER TAXES
Taxe professionnelle (Business Tax) Tax based on the value of the equipments used – real estate and equipment value – assests or leases. The rate is depending of the one determined in each city. Payment on the 15th of June –estimation of 50% of the tax paid the previous year - and on the 15th of December. Taxe sur les véhicules de tourisme TVTS (Tax on Tourism Vehicles) The tax has to be paid in October for Tourism vehicles owned (assets or leases or long term rentals). The cost is depending of the power of the car : 1,130 € for small cars (under 7 “chevaux fiscaux”) and 2,440 € for medium and big cars. The rules of calculation have been changed for the TVTS that will be paid after 2005. Contribution de solidarité (Solidarity Tax) If the sales are exceeding 760,000€ the tax of 0.16% of the turnover of the previous year has to be paid.
See our corporate Website www.exafi.fr
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Copyright © 2002 EXAFI EXADIT - Dernière modification : 10 juin 2006 |
