The taxation system in France
applies to all companies
and natural persons in the country related to the generated incomes. 2017 comes with important changes which we are going to relate to this article. But before we enter into details, we remind that our lawyers in France
are able to provide you with complete information and legal assistance for your company
in the country.
What’s new in the taxation system in France in 2017?
The French tax authorities intend to make some visible tax changes and especially the methods of collecting the income tax for wages, property rentals, and pensions, for smooth and correct transitional payments, for instance:
• the 2016 income taxes will be paid this year;
• the 2018 income taxes will be paid in the same year, meaning 2018;
• the annual income tax declarations
must still be submitted by entrepreneurs
and natural persons.
• the third party who makes the payments in France will be notified by the taxes they need to pay in the third quarter of 2017.
Moreover, the tax authorities
have prepared a new rule regarding the taxation
for sole traders
who gain less than EUR 18,500, and that is a 20% tax rate
, also available for partners or couples who are subject to joint taxation
. We remind that you can solicit help and guidance from our French lawyers
in taxation matters for your company
Taxes to consider according to the incomes in France
The Loi de Finances Rectificative 2016 and the Loi de Finance for 2017 entered into force last year in December, bringing the following revised taxes
for local and foreign companies
or natural persons in France
• 0% tax rate for incomes up to EUR 9,710;
• 14% tax rate for incomes between EUR 9,711 and EUR 26,818;
• 30% tax rate for incomes between EUR 26,819 and EUR 71,898;
• 41% tax rate for incomes between EUR 71,899 and EUR 152,260;
• 45% tax rate for incomes between EUR 152,2614 and more.
It is good to know that single taxpayers in France
will be levied with a lower tax rate
if the registered incomes are between EUR 18,500 and EUR 20,500.
We kindly invite you to contact our law firm in France
for additional information about the taxation changes
in the country for companies
and sole traders