French tax standard

French tax system aims at promoting enterprise investment, regional development and international development; At the same time, by treating different interest groups differently, it fully embodies the fairness of the French tax system. France has signed tax treaties with more than 100 countries to protect investors from double taxation. According to the Agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion signed by China and France (20 14+65438 came into effect on February 28th), the taxes paid by enterprises in France can be reduced or exempted in China. France has a perfect tax system, which is a typical representative of the tax system in western countries. 1959 tax 50 before the reform of the French tax system, France adopted a territorial tax system and later changed to a comprehensive income tax system. The French government established, operated and reformed the tax system based on a series of principles, including the rule of law, openness, equality and the principle that the rich pay more taxes and the poor pay less taxes.

Taxes in France can be roughly divided into four categories: income tax, consumption tax, capital tax and local tax.

Enterprise income tax This is the income tax levied on legal persons. All joint-stock companies and limited liability companies engaged in business activities in France, regardless of the type of business activities, French enterprises or foreign enterprises, generally have to pay enterprise income tax.

(1) Corporate tax rate. Except the temporary surcharge, the following tax rates are applicable to enterprises: 1, and if the profit is less than 10000 euros, the tax rate is 28%; If the profit exceeds 1 10,000 euros, the tax rate shall be the standard tax rate (28% shall be uniformly applied after 2020); 2 The tax rate for profits below 38 120 euros is15%; Tax payment of non-profit organizations: income from assets (real estate rental, etc.). ) Pay by 24%; Movable property income (bonds, etc.) ) Pay according to 10%; 4. When the enterprise turnover (excluding tax) exceeds 7.63 million euros and the enterprise tax exceeds 1 10,000 euros, social insurance premiums shall also be paid. Enterprise losses can be deferred indefinitely, and this year's losses can also be deducted from previous years' income (losses can be calculated forward).

(2) Consolidated tax system: companies belonging to the same group and their domestic subsidiaries holding 95% of the shares can choose to declare as the same taxpayer, and the profits and losses in the same taxpayer can offset each other. The accounting periods of the parent company and the subsidiary company must be consistent. Enterprises can adopt this system within 5 years. If the enterprise ownership logo no longer matches, it will automatically stop being used. French enterprise income tax is paid according to the fiscal year and paid in advance quarterly. The amount paid in advance is 25% of the taxable income in the previous fiscal year. In the first three months of the next fiscal year, it will be settled at the end of the year to make up for the underpaid income tax. French companies and their overseas subsidiaries can declare corporate income tax on a consolidated basis, and each subsidiary can pay taxes after breakeven. Taxes can be paid by cash, check or bank transfer. If the turnover of an enterprise exceeds 6.5438+0.5 million euros, online declaration and payment must be made.

Personal income tax is a tax levied on all natural persons with income. Its principle is to adopt a high progressive system according to different incomes, that is, to divide different tax bands according to people's income. At the same time, according to everyone's different situation, the tax payment parameters of families with children are calculated after deducting family and occupation expenses. In 20 16, the government continued to implement five tax bands in order to reduce the burden on low-income families.

Consumption tax This is the tax that people pay to the state when they consume. This kind of tax is included in the commodity price and paid by the businessman to the state, so it is an indirect tax. Consumption tax is divided into the following three categories: value-added tax (TVA); Alcohol, beverages, tobacco and alcohol taxes; Fuel tax. Among them, value-added tax is the most important consumption tax and the largest tax in the national fiscal revenue. VAT rates are mainly divided into four categories: (1) basic tax rate: 20% (most goods and services); (2) Intermediate tax rate: 65,438+00% (agricultural primary products, some animal foods, drugs that cannot be reimbursed by social security, transportation and take-away of some works of art, ticket income of theaters, zoos, museums, grottoes and cultural exhibitions, passenger service, and some repair and maintenance projects, etc.). ); (3) Low tax rate (water and non-alcoholic beverages, articles for the disabled, theater operation, student canteens, etc.). ); (4) Ultra-low tax rate (drugs that can be reimbursed by social security, registered news publications, public television tax, certain performances, etc.). ).

Capital tax includes various taxes related to capital and property, such as registration tax, property transfer tax, property value-added tax and super-rich solidarity tax. The tax rate varies according to different situations. At the end of 20 17, the French Parliament voted to levy a fixed tax rate (PFU) of 30% on taxpayers' movable property income and capital gains (interest, dividends, etc.). ), but a savings account (LIVRET A) and a securities savings account (PEA), and some life insurance contracts (savings for more than 8 years, savings amount150,000 euros or less). In addition, the super-rich solidarity tax (ISF changed to SF). IFI means that only taxpayers' real estate is taxed, while movable property and financial investment property (stocks, securities, life insurance, etc. ) are excluded.

Local taxes In France, taxes paid to the central government are far more than those paid to local governments. Local tax revenue only accounts for about 20% of the total tax revenue. The beneficiaries of local taxes are local governments at regional, provincial and municipal levels. Local taxes are mainly divided into the following categories: (1) construction real estate tax. This is an annual tax levied on people who own real estate, factories and their affiliated real estate. The tax rate is calculated according to the rental value, and the standards vary from place to place. (2) Non-construction real estate tax. This is an annual tax levied on people who own non-construction real estate, and the tax rates vary from place to place. (3) Housing tax. This is an annual tax levied on residents, and both landlords and tenants must pay it. The tax rate is comprehensively calculated according to the rental value, living area and residents' income, which varies greatly from place to place. During the election campaign, French President Macron promised to gradually abolish the family housing tax, which was passed by Parliament at the end of 20 17. This reform began in 20 18, benefiting 80% of the more than 70,000 taxpayers. In 20 18, the housing tax rate of 80% families will be reduced by about 30%, which is equivalent to a reduction of 3 billion euros; 65% reduction in 20 19, equivalent to a reduction of 6.6 billion euros; It will be completely abolished in 2020, that is, tax reduction 10 1 billion euros. (4) Occupational tax. This is a local tax levied on all legal persons or natural persons engaged in non-wage professional activities. Enterprises are the main source of this part of tax revenue. The tax rate is calculated according to the rental value of various places and the parameters of various industries, and paid once a year.