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 French tax on French-source income.

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.

Married individuals may file an individual or a joint tax return

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 2012 including:

• standard deduction of 10% on gross income capped at EUR 14'157,
• contributions into social security, unemployment and pension contributions,
• certain expenses with respect to principal residences, expenses for sustainable development, charitable contributions, doemestic employees, students, and child care.

Income tax rates for 2012 are:

•   0.00%  from EUR            0.00 up to EUR   5’963.00,
•   5.50%  from EUR    5’964.00 up to EUR 11’896.00,
• 14.00%  from EUR  11’897.00 up to EUR 26’420.00,
• 30.00%  from EUR  26’421.00 up to EUR 70’830.00,
• 41.00%  over EUR  70'830.00.

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.