外国税制第7章

1、France-A romantic country The Eiffel Tower Chapter seven Taxation in France Overview Individual income tax Local taxes Wealth tax Inheritance tax VAT tax Compliance Recent tax reform 1.Overview Taxation in France is determined by the yearly budget vote by the French Parliament, which determines whic

2、h kinds of taxes (or quasi-taxes) can be levied and which rates can be applied. In France, taxes are levied by the governement, and collected by the public administrations. French public administrations are made up of three different institutions:1.1 The central government, i.e. the national governm

3、ent or the state (ltat) stricly speaking, plus various central government bodies. It has a separate budget (general budget, special Treasury accounts, special budgets). It collects most of the taxes. 1.2 Social security association (ASSO), is a private organizations endowed with a mission of public

4、service (even though they behave to a large extent like public administrations). Their budget is made up of all mandatory social security funds (general scheme, unemployment insurance schemes, complementary retirement funds and welfare benefit funds, funds for the liberal professions and agricultura

5、l funds, special employee schemes) and the agencies financed by such funds (social works, public and private sector hospitals contributing to public hospital services and financed from an aggregate operating grant). They are mostly financed by social contributions, collected for the sole purpose of

6、social welfare. 1.3ulocal governments, which include agencies with limited territorial jurisdiction, such as local authorities, local public establishments, chambers of commerce and all public or quasi-public bodies financed primarily by local governments. They collect many taxes, but their weight i

7、s rather limited compared to that of central government. 1.4 Main taxes in FranceCorporation tax(9% to 12%)Individual income tax(16% to 21%)VAT(30% to 45%)Domestic tax of petrol goods and sintaxes(5% to 10%)Local taxes(10% to 15%)Succession tax etc.(6% to 10%) 2. Individual Income TaxYou are subject

8、 to French income taxes, if any of these conditions apply :if you arrive in France with the intention of living there permanentlyyou hold a residence permit if you spend more than 183 days in the country during a calendar year if most of your wealth is based in France if your main professional activ

9、ity is in France 2.1 ：criteria of resident 2.2 The object of Tax Income taxed on earnings rental income pensions investment incomeNet IncomeSubject to TaxUp to 4,3344,35 to 8,5248,525 to 15,00415,005 to 24,29424,295 to 39,52939,530 to 48,747Over 48,747Tax Rate 0%6.83%19.14%28.26%37.38%42.62%48.09%Be

10、fore the year of 20077 bands2.3 THE RATE OF TAXThe Tax Rate (year of 2007) Net Income rateSubject to TaxUp to 5514 0%5515 to 10846 5.5% 10847 to 24431 14% 24432 to 65558 30%Over 65559 40% 2.4.1. Remuneration Remuneration paid by foreign and/or local employers is taxable in France when the activity i

11、s performed in France even if the remuneration is paid outside France. Remuneration includes : salary, allowances, bonuses and benefits in kind (example : personal use of a company car, company-provided accommodation). 2. 4 Taxable income Social security charges are deducted from remuneration when c

12、alculating net taxable income. Then, the amount declared in the tax return as professional income can benefit from other deductions, amounting to : A 10% deduction for professional expenses from the declared remuneration, A further 20% deduction on the net declared remuneration after the above 10% d

13、eduction for professional expenses2.4.2. Property income Property income is generally taxed in the country where the property is located. Investment income : French interest income: for French interest income, you may opt for a 26% (16% + 10% social contributions) with holding tax or taxation in acc

14、ordance with the sliding scale (in 2003, the top rate on the sliding scale is 49.58% of taxable income and for 2004, the top rate on the sliding scale is 48.09% of taxable income). French dividends are taxed on the sliding scale basis. Foreign dividends and interest income : for dividends and intere

15、st income received from countries having concluded a tax treaty with France, the gross amount received (before the foreign withholding tax deduction) is also taxable in France. Thereafter, the application of the tax treaty avoids double taxation. Social contributions are also payable on these types

16、of income. 2.4.3. Capital gains Capital gains realised on the sale of stock or securities are taxed at a flat 16% tax rate + 10% social contributions. This applies to unquoted securities or securities quoted on French or foreign stock exchanges or to securities in various unit trusts and mutual fund

17、s (such as SICAV, FCP). No taxation is applied if the amount of sale during the fiscal year is under 15 000.3.5.1. Maintenance payments Maintenance payments resulting from a court order issued after formal separation or divorce proceedings are tax deductible.2.5. Deductions from taxable income2.5.2.

18、 Child/Parent support payments Child support payments are tax deductible. Support payments to parents may be deductible if the taxpayer can prove that his/her parents are in a situation of need.2.6 Tax calculation Taxable income is divided into shares reflecting the taxpayers family status (married,

19、 single or widowed) and reflecting the number of dependants. French residents for tax purposes may benefit from a variety of tax credits relating to : Contributions to French charities, French political parties, educational, scientific, social and cultural organizations Childcare Healthcare 2.7. Tax

20、 credit Employment of domestic personnel Major repairs for the main home owned in France Education of children in secondary or higher education The nature and amounts of these credits should be checked every year as they are subject to change.3.Local taxes Whilst income tax constitutes the primary t

21、ax burden in France, you should not forget the Taxe dHabitation Community Charge. This tax is assessed on the occupants of all types of accommodation, as of 1st January each year. The basis of the community charge is the rental value of the property, irrespective of it being owned or rented by you.

22、The Community Charge usually amounts to less than one months rent. You will receive the bill in October for payment by 15th November at the latestThe Community Charge usually amounts to less than one months rent. You will receive the bill in October for payment by 15th November at the latest.3.1 The

23、 Taxe Foncire - Property Tax is also due by any owner of property in France before the end of each year (usually it has to be paid before 15th October). Owner-occupiers are liable for both taxes3.2 Professional taxThe professional tax is due each year by legal persons or natural persons who are self

24、-employed in France. Various exemptions are provided (activities performed by the State, local authorities and public institutions, business and agricultural organizations, etc). The tax base is constituted by the rental value of assets available to the taxpayer. The is then subject discounts or reb

25、ates. The amount of business tax is calculated by multiplying the taxable net by the rates approved by each local beneficiaries. The rates are set by the local communities and organizations, within limits set by national legislation. In 2005, proceeds from the business tax amounted to 25.06 billion

26、euros. The amount of business tax is calculated by multiplying the taxable net by the rates approved by each local beneficiaries. The rates are set by the local communities and organizations, within limits set by national legislation. In 2005, proceeds from the business tax amounted to 25.06 billion

27、 euros.3.3 Housing tax The housing tax applies to all building sufficiently furnished and their dependencies (gardens, garages, private car parks): the tax is payable by any person who has a residential unit at ones dispossal, for any reason (owner, renter, occupant for free). The tax base is the ca

28、dastral rental value of the residential property. In 2005, the revenue from the housing taxes amounted to 13.37 billion euros.3.4 Land tax The property tax on built lands is applied to properties built in France. The taxable properties consist of all permanent construction, i.e. buildings (blocks of

29、 flats, houses, workshops, warehouses, etc.). The tax base is the cadastral income, equal to 50% of the cadastral rental value of the building (i.e. the value set by the administration). For social reasons, there are many exemptions and exceptions. In 2005, the product amounted to 17.73 billion euro

30、s. Individuals resident in France for tax purposes are liable to the Impt de Solidarit sur la Fortune or ISF - French Wealth Tax when the value of their net worldwide assets exceeds 732 000. The sliding scale varies from 0.55% to 1.80% of the net taxable amount. Individuals not resident in France fo

31、r tax purposes are taxed on their French properties when the net value exceeds 732 000. Exceptions are applied regarding citizenship and/or the existence of a tax treaty between France and the country of origin. The Wealth Tax return must be filed by 15th June and the tax is payable with the return.

32、4. Wealth tax Exceptions are applied regarding citizenship and/or the existence of a tax treaty between France and the country of origin. The Wealth Tax return must be filed by 15th June and the tax is payable with the return. If the deceased was resident in France, tax is payable on all worldwide n

33、et assets unless otherwise provided by a Tax treaty. For a deceased non-resident, it is necessary to distinguish whether heirs are French tax resident or not. In case they are French tax resident, they are liable to French inheritance tax on all assets they receive. As a non-French tax resident, onl

34、y French assets are taxable.5.Inheritance tax 6. VAT VAT is a tax that consumers pay on the consumption of goods and services. For companies subject to this tax, its a neutral tax. Frances standard VAT rate on sales of goods and services is 19.6%, but there are also reduced rates:5.5% and 2.1% In or

35、der to establish a single market made up of the member states of the European Union, a number of directives on VAT has been enacted since 1967, with the obligation for states to adapt their domestic legislation . The rules relating to the scope, the tax base, the payment, the territoriality of goods

36、 and services as well as reporting requirements are partially harmonized, but states can apply transitional arrangements in respect of rates, exemptions and rights of deduction, whose rules are being harmonized. The VAT is a general consumption tax, which applies to goods and services located in Fra

37、nce. It is a proportional tax on output collected by the companies and ultimately completely supported by the final buyer, i.e. the consumer, since it is included in the price of goods or services. Indeed, VAT is applied to the added value, ie the added value to the product or service at each stage

38、of production or marketing, so that at the end of the economic circuit, the overall tax burden corresponds to the tax calculated on the final price paid by the consumer. The current standard rate is at 19,6%. The reduced rate (for food and books) is 5.5% . A specific rate of 2,1% applies only to the drugs taken in charge by the Social Security. The net revenue of VAT in 2008 is 126 billion euros.7.1. French tax administration The Tax Administration is divided into two sections : 7.1.1 Tax Office :The