France - Tax Guide for Freelance Contractors
Welcome to our guide to French Taxation. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, France.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in France. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in France.
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French Income Tax
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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.
In May each year, for the previous year.