Personnal income tax (IRPP)
Personnal income tax
Doing business in France can be complicated. That’s why at Maupard we make things simple. Here, are experts provide the latest thinking on the most important matters relating to doing business in France.
For further information on anything you’ve read about, feel free to get in touch and we’d be happy to discuss things further.
Tax reduction for subscription to the capital of an SME
The Obligation to Declare Accounts Held Abroad
Income tax or corporation tax: what are the differences?
Ongoing professional and apprenticeship tax
Benefits of the RRF in France from an environmental perspective
Why move your business to France in a post-Brexit world
Authors: Support agreement between France and UK REF.: 072 Support agreement between France and UK Good news: taxation with representation An administrative assistance agreement between France and the UK has been signed: In cross-border trade between both countries, a tax representative is no longer mandatory but a tax agent is acceptable. The United Kingdom…
The ‘smart border’ and its implications for trucks transporting goods across the UK – France border after Brexit
The end of VAT exemption for services provided by cost-sharing agreements outside the EU
Tax Residence: Owning estate is not sufficient
Why setting up a liaison office is ideal in the current economic climate
2021 Finance Act and New Developments concerning Personal Taxation
Relaunching France: improving France’s long-term competitiveness
VAT and short-term rentals: The tax reduction rule has been abolished
Franco-Brazilian tax agreement: the criterion of the place of residence specified
CIR: assessment of the eligibility of subcontracted ancillary operations
Abnormal management and transfer pricing: Information on the burden of proof
Personal Income Taxes: how to anticipate a return to or a departure from France
Authors: How income tax is calculated in France REF.: 071 How income tax is calculated in France In reviewing the finance law for 2020, which lowers income tax, it is useful to look at the process of calculating income tax in different situations. Income tax is calculated based on the amount of gross taxable income,…
New tax declarant: How to benefit from a personalised tax rate
How to apply for deferment or remission of taxes (in situations such as difficulties faced due to COVID-19)
CIR: obligations regarding justifying eligible expenditure
VAT refund procedure for EU companies with no permanent establishment in France
Income tax: Inactive foreign bank accounts must also be declared
Authors: Income tax: Measures that you can take before the end of the year REF.: 070 Income tax: Measures that you can take before the end of the year As the end of the tax year approaches, there are certain decisions that you can make in order to reduce your tax burden. With regards to…
Brexit: what impact will it have on EORI numbers?
Do you earn in both France and the UK? – NDTT (Non-Double Taxation Treaty) between the UK and France
REF.: 069 Brexit – Solutions for cross-border investors in France Much is still unclear about the terms on which the UK will leave the EU, and therefore for many businesses across Europe the potential impacts are a major concern. We understand that many of our British cross-border clients are worried about how their business activity…
REF.: 068 Usually, the French administration imports the accounting entries of a company before conducting a tax audit.
REF.: 066 Ever since Macron’s administration took office, France has established itself as a “start-up nation”. It is an attractive place for start-ups and SME’s, as the French government has demonstrated its willingness to invest in these companies as a means to boost the French Economy. Carry on reading to find out what’s involved in…
REF.: 065 In France, you are currently taxed on the amount of income that you received in the previous year. From 1st January 2019, things will change with the introduction of withholding tax! This new system will remove the 1 year gap between income collection and taxation and will adapt more quickly to changes in…
REF.: 064 Under French regulations, real estate income generated in France by non-resident private individuals is taxable in France, whatever its legal source:
REF.: 063 In recent years, France has taken measures to increase its appeal to foreign investors.
REF.: 062 Running a business on an international scale is not solely reserved for big corporations.
REF.: 061 Small businesses are targeting clients directly, circumventing traditional revenue streams. Digital ‘real estate’ is in demand and getting more expensive every year.
REF.: 060 Despite Macron’s push to encourage foreign investment, France’s administration system continues to be plagued by arduous formalities and laws.
REF.: 059 If you’re non-resident and receive income from French sources, you are liable to Income Tax.
REF.: 058 The push for a pro-business France is set to continue into 2018, with Macron delivering a speech in a mix of English and French at the World Economic Forum.
REF.: 057 Some of the most common questions we get asked at Maupard are; what are the company structures in France? What are the pros and cons of each one? Which one is right for my business? There are many different options and lots of things to consider.
REF: 056: After the scandals of the early 2000’s, and to prevent money laundering, a KYC (meaning “Know Your Customer”) procedure became mandatory in many countries, including France, the UK and the USA.
REF: 055: Are you a young start-up, developer, or small business? Looking for a place where you can launch your business and begin creating the future? Perhaps you’ve already started your firm and you’re looking for a place to set up your R&D activities? Look no further than France. Let us welcome you with the…
REF.: 054: According to the French department of administration, Business France, the number of researchers employed in R&D by French companies, between 2008 and 2013, increased by 23%. There are 5.7 researchers in French companies (per 1000 active employee) compared to 4.8 in Germany and just 3 in the UK[1]. This makes us just as…
REF: 053: France is well known for its strict tax rules. This can often discourage international businessmen and women from coming to live here, especially company managers and other high earning-employees. However, did you know that there’s a special tax regime for international businessmen and women? In fact, the “régime d’impatriation” (or “inpats” scheme, as…
REF: 052: If you carry out commercial transactions with European Union (EU) member countries or are planning to do so in the near future, this information may be useful: Within the European Union, most trade is carried out freely, with no formalities and without border control: there is no need to make a customs declaration.…
REF: 051: Incorporation of an SAS: Investors often ask us about the best way to set up in France. In our experience, our prospects tend to fit one of the 3 following profiles:
REF: 050: If you are an EU based company without an establishment in France, you are a non-resident firm. Generally, to deduct VAT in France you must also collect it, i.e. you must deliver goods and services subject to VAT. When you have deducted more VAT than you collected, this generates a ‘crédit de TVA’…
REF: 049: If you are a foreign company without an establishment in France, you are considered a non-resident employer and if you want to recruit an employee operating in France, you will be liable to pay French social contributions. The French administration requires a local contact to reply to any correspondence related to social declarations.…
REF: 048: The Wealth Tax (Impôt sur la Fortune) in France has long been a source of debate. Even today, it remains a sort of ‘tug-of-war’ between the political left and right. It is an applied tax on the wealth of “rich” people, which aims to increase the contributions to the state budget of people…
REF: 047.2: If you rent furnished accommodation, you are automatically placed under the ‘BIC’ tax regime (industrial and commercial income tax) instead of under the regime applied to property income, as you would be if you rented unfurnished property. This status is also open to non-residents wishing to benefit from furnished rental status. Depending on…
REF: 047.1: Paris is a city loved and visited by the whole world. To protect tourism, the government is preserving historic buildings by preventing the construction of new housing. The real estate supply is therefore permanently limited and the practice of renting in furnished houses competes directly with the hotel sector. As the supply of…
REF: 046: The new “Google Tax” is intended to counter the methods used by multinational corporations to avoid paying tax in certain countries, particularly in the field of e-business where the location of profits is out of the control of sovereign states. This tax is based on the Diverted Profits Tax recently introduced in the…
REF: 044.3: When looking to setup a business alone, there are two possibilities available to you: Applying in your own name (either as an individual business or a micro-enterprise) OR Creating a one-person company (either as an EURL – a one-person limited liability company or a SASU – a simplified shareholder company) The Micro-Enterprise
REF: 044.2: The one-person company has a legal personality and its own assets. In fact, the sole partner limits their financial responsibility to just contributions. Another advantage is that it operates more easily because it is comprised of shares.
REF: 044.1: The company set-up for a Sole Trader does not have any legal entity and does not own its assets. There is actually no distinction between the sole trader’s own assets and those of the company. This therefore means that property, developed or undeveloped but linked to the Sole Trader, is liable to be…
REF: 043: In order to open a corporate bank account in France, you must comply with certain rules beforehand. FATCA (Foreign Account Tax Compliance Act) is an American law which was created in 2010 on March 18th. Its aim is to collect and store information in order to combat fraud and tax evasion. This regulation…
REF: 041: The law n°2015-1785, registered on the 29th December 2015, brings about a 3-year tax payment as an FNAL contribution at a rate of 0,50% on employees’ salaries for firms which employ a workforce of 20 employees or more through the years 2016, 2017 and 2018. The FNAL contribution (Fonds National d’Aide au Logement),…
REF: 040: The law n°2015-1785, registered on the 29th December 2015, brings about a 3-year tax payment as an FNAL contribution at a rate of 0,50% on employees’ salaries for firms which employ a workforce of 20 employees or more through the years 2016, 2017 and 2018. The FNAL contribution (Fonds National d’Aide au Logement),…
REF: 039: This article is a follow up from ‘Tax Credit for Entrepreneurs of Live Shows’, which was published on the 24th of August 2016. It explains ‘Decree 2016-1209’, which was put in place on the 9th of September 2016. This decree specifies the necessary conditions for applying tax credit. It also defines the relevant shows…
REF: 038: Often France is considered as the land of tight fiscal policy, a country lumbered with high taxes with little room for manoeuvre. This, however, is often not the case and there are several financial aids and tax credits which are designed to improve employment opportunities and facilitate healthy business competition between firms by…
REF: 037: VAT representation is not necessary for companies established in the EU but it is for those outside of it. Unless Brexit provides an exemption from VAT laws, investors will need tax representation when they perform transactions that are subject to French VAT.
REF: 036: If you are a company performing operations relating to cross-border trade and you are subject to French VAT, you must settle this tax as soon as these operations cross the border, in accordance with Article 293 A of the CGI. As long as you meet the conditions for the legal right to reduce…
REF: 035: In case of an error in the main base or the actual calculation of taxes, the taxpayer or their representatives can submit a claim to the administration in order to obtain a compensation. The Article R*196-1 of the Tax Procedures Book foresees a compensation period that expires on December 31st of the second…
REF: 034: Entrepreneurs of live shows are now able to profit from a new tax credit. This article explains the necessary conditions and methods for calculating this tax credit and provides the information you need to stay ahead in the world of the arts. Who is entitled to this? If you; operate in accord with…
REF: 033: VAT laws can vary enormously depending on whether trade is performed between EU countries or outside of the EU. Similarly, VAT rules change depending on the type of client; B2B, in which a company sells to another business and B2C, in which the company sells to a particular individual. One must therefore be…
REF: 032: In principle, the provision of services are taxable in France if the service provider’s main seat of his economic activity is in France. Since Directive 2006/112 / EC of the 28th November 2006, the VAT is paid by the customer if the service is carried out by a service provider established outside of…
REF: 031: Donations of movable and immovable property located in France that are made by non-residents are subject to a donation tax on the free transfer of assets. The tax regime that concerns these donations is the same as that of inheritance: the same tax reliefs, tariffs and reductions apply, under certain conditions.
REF: 030: If you wish to sell property located in France, the difference between the sale price and the original purchase price is subject to a ‘real-estate gain tax’ at a rate of 34.5 %. From the 1st January 2015, a single levy of 19% [1] relating to income tax, and a second levy of…
REF: 028: You are subject to the “exit tax” if you are a natural person domiciled in France who moves house, thus leaving France, and you meet the criteria of Art. 167a of the French General Tax Code (See our previous article Exit tax – Part 1).
REF: 027: Very few companies have the resources to pay their teams high salaries in their early years. However, in order for these companies to develop, the entrepreneurs in charge will often require the skillset of qualified and experienced employees. A potential solution to this problem could be a ‘Share Warrant for Entrepreneurs’ (BSPCE), which…
REF: 026: If you are planning on moving house and in doing so you will be leaving France, it is important to note that you could be subject to an ‘Exit Tax’, if you meet specific criteria. In France, this tax applies to revenue and social charges on all unrealised gains; however it is possible…
REF: 025: Liaison office, branch, subsidiary… You should decide on a structure that meets your needs in terms of development (short-term or long-term) and desired level of control for the foreign company (low or high). However, the tax consequences and social obligations for each structure differ considerably, and therefore deserve a short analysis. If you…
REF: 024: France has always been known as one of the most influential countries in Europe, playing a variety of roles throughout history. Thanks to this, France has been able to develop a unique architecture and many of its cities now make up what is considered to be the cultural heritage of the world.
REF: 021: In order to encourage new companies to invest in France, the French government has created different incentives to encourage the startup of innovative companies. These are accorded a JEI status (Jeune Entreprise Innovante) and a CIR tax credit (Credit Impôt Recherche). These allow the firms to enjoy tax exemptions during the initial few…
REF: 018: You are considered an “entrepreneur de spectacles vivants” if you are overseeing any activity at a performance venue, the production of a show, or the physical set up of a spectacle. Under this kind of management role, it is imperative to comply with several important rules particular to this sector in France.
REF: 017 Are you thinking about expanding to France or finally making the jump and starting up in the Paris Region? Maupard Fiduciaire’s CEO and founding partner Patrick Maupard talks about the French business environment and states some facts that could positively influence your decision.
REF: 016 Moving away from the convoluted and rather complex tax system that is currently in place in France, to a Pay-As-You-Earn (PAYE) system like that used in most European countries, has been in the French governments’ pipeline for a while now. However, the decision came on Wednesday the 16th March 2016 to in fact…
REF: 015 First of all, a person is subject to French private income tax if they live in France and/or generate revenue from a French source. If this person meets 1 of the 3 following tax residency requirements, then they will have to make an income tax declaration in France:
REF: 013 Do you pay social security contributions on your capital income in France, yet are also insured under a social security scheme in another member state of the EU, EEA or in Switzerland? You could be paying more than you need to and thus entitled to a refund.
REF: 012 The French Research Tax Credit scheme was established in 1983 to favour R&D investment. Since 2008, companies eligible for the Research Tax Credit scheme have benefited from a credit of 30% for research expenditure up to €100 million and 5% above this threshold.
REF: 011 Our team of experts often receives questions from expat homeowners in France on the difference between two of France’s main local property taxes: taxe d’habitation and taxe foncière. In Part Two of our two-part summary, we explain taxe foncière.
REF: 010 Are you a non-resident homeowner in France? Perhaps you are retiring to the South, or are considering acquiring a chalet in the French Alps to rent out. Buying and managing a property in any country can prove to be a hassle at times, particularly when it comes to paying the correct taxation rates…
REF: 008 A recent ruling of the European Court of Justice (ECUJ) against the levying of French social contributions could entitle you to refunds and make France a more attractive place for domiciliation and investments. These changes in French Social Security Contributions legislation affect an estimated 60,000 French or foreign individuals living both in and…
REF: 007 Change for nonresidents in French Social Contributions Rules Have you had rental income from France within the last 2 years? Have you sold real estate in France within the last two years? Are you a non-resident? If these questions are relevant to your situation, there have been some important changes in European legislation…
REF: 005 If you are thinking of moving a business to Europe, you are probably aware that you have access to a market of 500 million consumers in an area that generates approximately 23% of global nominal GDP. E-commerce in the EU is a lucrative opportunity for your business. Furthermore, the EU’s statistical office Eurostat,…
REF: 004 In the US, or in the UK, setting up a corporate bank account is usually quick and easy. In France it is not unusual for the procedure to last a few months, so knowing what to expect, and what to do, is essential. A bank account in France is vital for any company…
REF: 003 Starting a business in France is different to starting one in other countries in Europe. In other European countries, incorporation is immediate, however, in France this process takes time because of French administrative formalities. During this period you can still work for your clients as a ‘company in formation’ and spend money for…
REF: 002 A new tax law has changed requirements in French tax audit procedure, and your company may be affected. A “FEC” file must now be provided to the tax auditor at the start of any tax audit. However there is no need to panic: contact us today if you need help complying with this…
Paul Ryan-Brown, an English and French student from the University of Durham, has been working with us since September. Here’s what he had to say about his experience: