France
Tax is generally assessed on family groups rather than on individuals. Tax relief is given to "family units" under an income splitting system rather than through personal allowances.
The tax rates vary from 0% to 54% depending on the band of taxable income. An additional 2% is charged on investment income, with residents being charged 7.5% for a general social contribution.
Capital gains on the disposal of shares below FF50,000 are exempt. However, gains on the disposal of a shareholding of 25% or more are charged at 26%, together with social levies.
Allowable deductions from income include the cost of childcare, part of the cost of repairing the principal residence and some of the expenses incurred on domestic employees.
The tax year-end is 31 December and tax returns must be submitted by the following 1 March.
VAT is charged at either 0%, 5% (e.g. food, medicine, books etc) or 20.6% (the standard rate). Exempt items include education and medical services.
Other deductions which employees must pay are health and unemployment insurance, and pension contributions, which vary from 18% to 22%.
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This page was last reviewed on 03 April 2006. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
