France - Tax Guide for Freelance Contractors

Tax Residents in France:        are liable to pay French tax on their worldwide income,
Non tax residents in France:  are liable to pay tax on French source income in France (mainly on income deriving from work performed in France).

Individuals will be regarded as tax residents:

• if their home or principal abode is in France,
• if they perform employment or independent services (unless these are only ancillary) in France,
• if their centre of economic interests is in France.

The income of married couples is aggregated for tax purposes. Unmarried individuals who live together and have concluded a partner contract (known as a PACS) are generally treated in the same manner as spouses for income tax purposes.

Taxable income includes:

• employment income
• business income,
• benefits in kind,
• investment income,
• certain types of capital gains,
• income from immovable property.

Certain deductions are permissible for 2010 including:

• standard deduction of 10% on gross income capped at EURO 13'893 or real expenses costs,
• costs of keeping children outside of home,
• contributions into pension scheme,
• professional expenses.

Income tax rates for 2010 are:

•   0.00%  from EUR            0.00 up to EUR   5’875.00,
•   5.50%  from EUR    5’876.00 up to EUR 11’720.00,
• 14.00%  from EUR  11’721.00 up to EUR 26’030.00,
• 30.00%  from EUR  26’031.00 up to EUR 69’783.00,
• 40.00%  over EUR  69’783.00.

There is a system of coefficients according to marital status and number of children which mitigates the levels of income tax. In addition to income tax, homeowners and/or residents may also be subject to dwelling and/or property tax and wealth tax.

Filing date:

In May each year, for the previous year.