The French Prime Minister, Manuel Valls, is committed to economic and fiscal reforms based on tax breaks in order to encourage local and foreign investors and to increase the employment rate. The first step of the program implies a five-year plan consisting of 2.5 billion euros tax breaks.
The French tax administration has recently published an updated list of practices or arrangements that are considered abusive. They were identified in tax audits and they include certain practices related to the value added tax (VAT) in France. The list includes issues like undeclared VAT on remote sales and the penalties that may apply in this case. Our French attorneys can help you comply with any tax and audit requirements, so that your company does not have to deal with the consequences of any fraudulent practices.
The French Government has changed the applicable tax thresholds this year. The lowest tax rate has been removed and the tax rates that will be used to calculate the income tax for 2014 have different tax bands. Our French law firm can help you calculate the amount of due taxes applicable for your income produced in France in 2014.
The most recent forecasts released by the French Government predict that the country’s economy will grow faster than anticipated. The estimates are made for 2015 and are based on the most recent figures that indicate a much faster growth than anticipated. This new wave of optimism could encourage investments and help bring more foreign direct investments in the country.
At the beginning of 2015, France has brought few changes to its value added tax (VAT). The first change refers to the scope of the VAT rates and the second one was made to the reporting regime. Starting 1st of January 2015, France introduces a simplified VAT reporting regime.