The social charges imposed on rental income and capital gains produced by non-residents in France will be maintained in 2016. The tax liability will be applicable on income derived from rental and investment income in France produced in 2015, taxable in 2016. These social charges are maintained despite a ruling from the European Court. However, individuals have already applied for tax refunds for these payments made until 2015. The experts at our law firm in France can help you with tax compliance in the country if you are a non-resident.
An entrepreneur in France has certain tax advantages and benefits from a simpler taxation regime. France imposes a pay-as-you-go system for individuals who act as self-employed entrepreneurs, in contrast to the regime reel status which is the standard tax status for a business in France. While there are some differences that are more convenient for the entrepreneur, at least in terms of social security contributions, the taxation differences need to be observed accordingly before entering into a business arrangement or opening a company in France.
A while back France announced the extension of the tax credit scheme for video games in order to loosen up the eligibility criteria for gaming companies. The new tax credit scheme has decreased the minimum investment threshold and allows French companies to deduct certain costs related to employees. The new French tax credit scheme applies to small and medium companies operating in the video gaming industry.
The French Government announced a series of tax measures aiming to reduce administrative requirements and the simplification of tax compliance. The package includes 92 measures, most of them dedicated to the simplification of administrative procedures French companies must go through every time when they have to deal with the tax authorities. Another measure targeting the income tax deduction at source is also under debate.
After the French Supreme Court determined that a higher rate of capital gains tax on non-EEA residents was illegal, now non-residents living outside the EEA who sold property in France, in 2014, can apply for a refund. Our French law firm provide the needed assistance if you want to claim a refund.
A new legislative reform regarding home improvements will now make it mandatory for property owners in France to disclose any modifications brought to the building for the purpose of taxation in the following year. This measure aims at allowing for a better determination of a property’s true value and will also increase the income received from local councils from the taxes due for property improvements. Our French law firm can offer you assistance if you need more information on local rates for property modifications.
At the beginning of May, the French Government released a document revealing new measures to encourage employment which will also include tax breaks for local and foreign investors. The Government also declared the French income tax will not be merged with the social security, as this measure would only lead to an increase of the tax burden on the citizens.
France and Germany have recently revealed that they support a common basic corporation tax among the EU member states. The plans are just being debated by EU officials, however even in this early stage the proposal has created some important reactions from British officials who believe that this would result in higher taxes for British companies. Our French lawyers are ready to help you understand the implications of such a decision.
Certain exceptional measures have been proposed by the French Prime Minister for businesses operating and engaging in commercial activities in France. One of these measures will be the bonus annual depreciation for certain investments, primarily equipment bought by the companies. The measures are intended to encourage investments in France and need to be approved by the French parliament in order to become applicable.
Second home owners in France can benefit from a special tax exemption from an applicable surcharge, only if they are unable to let or sell the property and according to certain circumstances. Our French lawyers can help you sell or let a property in France and we can also help you if you are a buyer who’s trying to find a property in France.
The capital gains tax was substantially reduced for individuals who are residents of countries outside of the European Economic Area. The larger tax has been ruled out because it was considered to be discriminatory and also illegal. Until this measure, non-EU residents working in France had to comply with different capital gains taxes. If you are such a citizen working in France, our French lawyers can help you with tax compliance.
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.
The industrial production in France, in January, surpassed any predictions made for the first month of the year. The total amount of production rose by 0.4%, compared to December 2014. Although analysts expected this financial sector to drop, French companies in the industrial sector have shown signs of recovery.
France is making efforts to improve its economic situation and has prepared a revolutionary economic reform bill. While some of the changes may encourage consumer spending and even foreign investments, some of François Hollande’s measures attracted skepticism.
French shops in certain touristic areas are going through an important change. A legislative measure, proposed by France’s Economy Minster, allows shops to stay open on Sundays. This unprecedented measure could boost sales and please tourists. However, the main goal is to make France more business friendly and more attractive for foreign investors.
Foreign investors who want to open a company in France should know that the country has adopted a sustainable development strategy and also has a functioning environment charter. Companies in France need to comply with various environmental issues, like water management, waste management and if, applicable, hazardous waste disposal regulations.
The latest predictions for 2015 regarding France’s economic situation show that the country is on its way to economic growth, as the lower oil prices and a weaker euro seem to be the main ingredients that will boost the country’s economy this year. This is good news for foreign entrepreneurs willing to invest in the country.