France Tax Rates 2022

France Income Tax Rates 2022

The rates applied to each share are (2022):

FRENCH CORPORATE TAX

• The French corporate tax rate in 2022 is 25%.
  A 3.3% surtax is applied to big companies.
  The surtax is computed when the tax liability exceeds EUR 763,000.
• The effective maximum tax rate is 25.85%.
• Most of the capital gains of companies are included in the taxable income For individuals gains from sale of movable assets are taxed at 30%, including social contribution.
  Gains from sale of immovable property is taxed at 19%.
• Dividends are taxable at about 1.29% only when the shareholding exceeds 5%.
• Withholding taxes regarding outbound dividends are largely reduced by treaties signed by France.
  In most instances, zero withholding tax is applied to dividends, interests, royalties paid to EU residents.
• In general the tax withholding rates for other payments to non-resident companies are:
  • Dividend- 25%
  • Interest- 0%
  • Royalties- 25%
  • Technical Fees -25%
• Losses may be carried forward indefinitely, subject to terms.
  Each year up to a ceiling of EUR 1 million and 50% of the taxable income of a certain year.
  There is a carry back of losses up to one year subject to terms.
• Large tax deductions are granted such as depreciation, interests etc.
• However intangible cannot be depreciated and thin capitalization rules are applied.
• Important tax credits are granted for research and development.
  Credits in excess may be reimbursed.
• Parents and affiliates may be consolidated for tax purposes but foreign companies are excluded.
• CFC rules are applied.

French: Foreign Companies