The corporate taxes in France are dealing with the profits which have been earned by companies and businesses in an entire year. Generally speaking, any business or company is required to pay about 33.33% of its profit as corporate tax in France.

However, there are certain items from which corporate taxes are exempted and in some cases, the percentage of tax is reduced. It has been planned that corporate tax will be reduced to 28% till next year. It is estimated that in the year 2016 the net corporate tax collected was about 30 Billion Euros.

The rates of corporate taxes in France are dependent on the turnover and structure of a company or business. For example, if you are planning to become a freelancer in France, then you are liable to pay tax under a “personal tax system” for starting a freelance business. The government authorities of France are flexible enough to allow certain businesses and companies to file their taxes under the personal tax system instead of filing tax under the corporate tax system.

Corporate Taxes in France

The New Bill of Corporate Taxes in France

The French corporate taxes are to be paid on the profits gained by businesses and companies over the entire year. However, the extent to which you would pay tax is depending on the turnover of the company or business and the structure of the respective business.

Recently, a new bill has been introduced that has reduced the percentage of tax. According to the new bill, the corporate taxes of the companies will reduce from 33.3 percent to 25 percent for the next 5 years if they have had a turnover of fewer than 500,000 Euros.

However, the tax will be reduced from 33.3 percent to 31 percent only if the turnover is larger than 500,000 Euros. However, there are a few exemptions in case if the business or company is new or has paid the last tax over 3000 Euros, but this is the only case for the yearly tax payments when companies and businesses are liable to pay taxes till the end of April each year.

Quarterly Payments of Corporate Taxes in France

In France, the corporate taxes are paid quarterly each year i.e. on 15 December, 15 September, 15 June, and 15 March.

The Changes in Rate of Corporate Taxes in France

There have been changes in the rates of corporate taxes in France, such as in 2017 the rate for corporate tax in 2017 was about 15 percent for the companies and businesses having profits of over 38,120 Euros. The tax rate was 28 percent for the businesses and companies having profits of about 75,000 Euros. The companies having over 75,000 Euros profit were charged at 33.3 percent.

According to the new bill presented, the rate of corporate tax on the profitable income of companies and businesses will be reduced to 28 percent only. However, the companies having stable profits of 1 Billion Euros a year will be charged at a higher rate of 38.3 percent instead of 33.3 percent. The companies making yearly revenue of over 3 Billion Euros will be charged at 43.3 percent.

Exemption from Corporate Taxes

The following items are exempted from corporate taxes in France.

  1. Startup businesses.
  2. The allowance schemes of higher depreciation.
  3. Startups in the Technology field.
  4. The research tax credit.