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This chapter is not exhaustive and is limited to broadly outline the tax consequences of the main events occurring when doing business in France. It does not constitute a tax advice or a client - attorney relationship. Materials are not suitable for tax analysis. Visitors are invited to consult a tax lawyer before taking any decision.
 Income tax rate computed for a single
Succession duties and gift tax for transfer to spouses or Parners (PACS)
Succession duties and gift tax for transfer to lineal relatives
Reduction of gift tax
Breakdown of value between life tenant and naked owner
Wealth tax
Capital gain tax rates
 Income tax rate computed for a single
|
Applicable rate
(Income 2011)
|
Taxable revenue in euros
|
|
0%
|
Not exceeding or equal to 5 963
|
|
5,50%
|
From 5 963 to 11 896
|
|
14%
|
From 11 896 to 26 420
|
|
30%
|
From 26 420 to 70 830
|
|
41%
|
Exceeding 70 830
|
|
Applicable rate
(Income 2010)
|
Taxable revenue in euros
|
|
0%
|
Not exceeding or equal to 5 963
|
|
5,50%
|
From 5 963 to 11 896
|
|
14%
|
From 11 896 to 26 420
|
|
30%
|
From 26 420 to 70 830
|
|
41%
|
Exceeding 70 830
|
|
Applicable rate
(Income 2009)
|
Taxable revenue in euros
|
|
0%
|
Not exceeding or equal to 5 875
|
|
5,50%
|
From 5 875 to 11 720
|
|
14%
|
From 11 720 to 26 030
|
|
30%
|
From 26 030 to 69 783
|
|
40%
|
Exceeding 69 783
|
(Up to date on January 1st, 2012)
Succession duties and gift tax for transfer to spouses or partners (PACS)
|
Transfer to spouses or partners
Taxable portion in euros
|
Applicable rate
|
|
Not exceeding or equal to 8 072
|
5%
|
|
From 8 072 to 15 932
|
10%
|
|
From 15 932 to 31 865
|
15%
|
|
From 31 865 to 552 324
|
20%
|
|
From 552 324 to 902 838
|
30%
|
|
From 902 838 to 1 805 677
|
40%
|
|
Exceeding 1 805 677
|
45%
|
(Up to date on January 1st, 2012)
See also " Reduction of gift tax " and " Breakdown of value between life tenant and naked owner " below.
Succession duties and gift tax for transfer to lineal relatives
|
Transfer to lineal relatives Portion taxable in euros
|
Applicable rate
|
|
Not exceeding or equal to 8 072
|
5%
|
|
From 8 072 to 12 109
|
10%
|
|
From 12 109 to 15 932
|
15%
|
|
From 15 932 to 552 324
|
20%
|
|
From 552 324 to 902 838
|
30%
|
|
From 902 838 to 1 805 677
|
40%
|
|
Exceeding 1 805 677
|
45%
|
(Up to date on January 1st, 2012)
See also " Reduction of gift tax " and " Breakdown of value between life tenant and naked owner " below.
Reduction of gift tax
From July 31st 2011, the only remaining tax reduction is the 50% reduction when the donor, less than 70 years old, agrees a full ownership gift of shares or sole proprietorship which fulfill the conditions to benefit from a partial exemption of inheritance tax ("pacte "Dutreil").
(Up to date on January 1st, 2012)
See also " Succession duties and gift tax for transfer to spouses " and " Succession duties and gift tax for transfer to lineal relatives " above.
Breakdown of value between life tenant and naked owner
|
Breakdown of value between life tenant and naked owner
|
|
|
|
Age
of life tenant
|
Value
of usufruct
|
Value of ownershiup
|
| Up to 20 years old |
90%
|
10%
|
| From 21 to 30 years old |
80%
|
20%
|
| From 31 to 40 years old |
70%
|
30%
|
| From 41 to 50 years old |
60%
|
40%
|
| From 51 to 60 years old |
50%
|
50%
|
| From 61 to 70 years old |
40%
|
60%
|
| From 71 to 80 years old |
30%
|
70%
|
| From 81 to 90 years old |
20% |
80% |
| From 91 years old and more |
10% |
90% |
(Up to date on January 1st, 2012)
See also " Succession duties and gift tax for transfer to spouses " and " Succession duties and gift tax for transfer to lineal relatives " above.
Wealth tax
2012 thresholds
|
Wealth Net taxable value
|
Applicable rate
|
|
From € 1,300,000 to € 3,000,000
|
0.25%
|
|
Over € 3,000,000
|
0.50%
|
Rebate :
- from € 1,300,000 to € 1,400,000 : reduction =24,500 € - (7 x 0.25% P)
- from € 3,000,000 to € 3,200,000 : reduction =120,000 € - (7 x 0.50% P)
P = Taxable assets value
(Up to date on January 1st, 2012)
2011 brackets
|
Wealth Net taxable value
|
Applicable rate
|
Tax by portion
|
Cumuled
tax
|
|
Not exceeding € 800,000
|
0%
|
0
|
0
|
|
From € 800,000 to € 1,310,000
|
0,55%
|
2,805 |
2,805 |
|
From € 1,310,000 to
€ 2,570,000
|
0,75%
|
9,450 |
12,255
|
|
From € 2,570,000 to
€ 4,040,000
|
1%
|
14,700 |
26,955 |
|
From € 4,040,000 to
€ 7,710,000 €
|
1,3%
|
47,710 |
74,665 |
|
From € 7,710,000 to
€ 16,790,000
|
1,65%
|
149,820 |
224,485 |
|
Over € 16,790,000
|
1,8%
|
|
|
Capital gain tax rates
|
Income tax
|
|
|
Rate
|
19%
|
|
Social surcharge
|
5.4%
|
|
Social tax "CSG"
|
8.2%
|
|
Social tax "CRDS"
|
0.50%
|
| Additional contribution |
1.40%
|
| Global income tax rate |
34.5%
|
(Up to date on March 15th, 2012)
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