France Tax Rates 2022Last partial update, January 2022.
France Income Tax Rates 2022Individuals pay in 2022 income taxes at progressive rates between 0 and 45%.
Additional 3% tax is imposed on personal income between EUR 250,000- EUR 500,000 and 4% for income exceeding EUR 500,000 for singles.
The taxable revenue is divided in 2 or more shares, in relation with the size of the family.
The rates applied to each share are (2022):
|Tax %||Income EURO|
|0%||Up to 10,225 Euro|
|11%||From 10,226-26,070 Euro|
|30%||From 26,071-74,545 Euro|
|41%||From 74,546-160,336 Euro|
|45%||Over 160,336 Euro|
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 CompaniesForeign companies pay taxes in France when they have permanent establishments in France.
Favorable regimes are applied to expatriates.
(Previous 2009 update by Olivier Maurin, www.aetd.fr)
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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