|
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.
 Revenues from private assets
Revenues from investments
 Revenues from private assets
Revenues from private assets like real estate revenues, life annuity, capital gains on shares, capital gains on real estate and dividends non subject to a standard deduction, are subject to CSG and CRDS.
Industrial and commercial profits and non commercial profits considered as non professional revenues are also subject to CSG and CRDS. (see more about this subject in self employed).
Foreign source revenues resulting from financial investment and real estate received by beneficiaries falling within the scope of the social taxes are subject to CSG and CRDS plus the 2% social withholding tax (check "who is taxable ?").
Financial investment and real estate revenues are subject to CSG at a rate of 7.5% and to CRDS at a rate of 0.5% plus a 2% social withholding tax.
Estate revenues are subject to CSG at a rate of 7.5% (8.2% as of January 1st, 2005) and to CRDS at a rate of 0.5% plus a 2% (2.15% for the taxation of 2003 income and 2.3% as of the taxation of 2004 income) social withholding tax. CSG is deductible for income tax purposes only up to 5.1%. CRDS and the 2% social withholding tax are non tax deductible.
CSG, CRDS and the 2% (2.15% for the taxation of 2003 income and 2.3% as of the taxation of 2004 income) social withholding tax are calculated on the taxable income as declared in the income tax return.
After taking into account the additional contribution of 0.15% applicable to the taxation of revenues earned in 2003 and additional contribution of 0.3% applicable to the taxation of revenues earned in 2004 and beyond, the overall rate of social taxes on such income will be increased from 10% to 10.15% for 2003 earnings and from 10.15% to 11% for income earned in 2004 and beyond.
Revenues from investments
Investment revenues subject to a standard deduction (obligations, Treasury bonds .) and investment revenues exempt from income tax (interest and premium for housing savings, profits and annuity from profits sharing plans...) are also subject to CSG, CRDS plus the 2% social withholding tax.
The 7.5% (8.2% as of January 1st, 2005) CSG, the 0.5% CRDS and the 2% (2.3% as of July 1st, 2004) social withholding tax are withheld by the debtor of the revenues when paid. None are tax deductible.
After taking into account the additional contribution of 0.3% applicable as of July 1st, 2004, the overall rate of social taxes on such income will be increased from 10% to 10.,3% from July 1st, 2004 to December 31, 2004, and from 10.3% to 11% as of January 1st, 2005.
|
Close
