Taxes in France
France's corporate income tax (impôt sur les sociétés) is 25%, with a reduced rate of 15% on the first EUR 42,500 of profit for companies with turnover not exceeding EUR 10 million that meet the ownership conditions. VAT (TVA) is 20%, with reduced rates of 10%, 5.5% and 2.1%. The tax code is the Code général des impôts, and the administration's published doctrine in BOFiP can be relied on against it under article L. 80 A of the Livre des procédures fiscales.
Key facts
| Corporate tax (IS) | 25%; 15% on the first EUR 42,500 for qualifying SMEs |
|---|---|
| VAT (TVA) | 20% standard; 10%, 5.5% and 2.1% reduced |
| Local business taxes | CFE, and CVAE during its phase-out |
| Wealth tax | IFI on real estate assets above EUR 1.3 million |
| Doctrine | BOFiP, opposable to the administration under LPF art. L. 80 A |
| Authority | Direction générale des Finances publiques (DGFiP) |
Opens the assistant with France already selected. Answers cite the law, guidance and cases they rest on.
Why BOFiP matters as much as the code
The Bulletin officiel des finances publiques is the administration's own interpretation, and a taxpayer who follows it is protected from reassessment even if a court later reads the statute differently. A French question therefore has two answers, the code's and BOFiP's, and the assistant gives both, with the Conseil d'État case law where they diverge.
Registration duties and local taxes
Transfers of real estate and of shares attract registration duties (droits d'enregistrement) at rates that depend on what is transferred. The cotisation foncière des entreprises and the taxe foncière are the main local levies, and the payroll tax (taxe sur les salaires) applies to employers outside the VAT system.
Frequently asked questions
- What is the corporate tax rate in France?
- 25%. Qualifying SMEs pay 15% on the first EUR 42,500 of profit.
- What is the VAT rate in France?
- 20%, with reduced rates of 10%, 5.5% and 2.1%.
Primary sources
- impots.gouv.fr — DGFiP
- BOFiP — Bulletin officiel des finances publiques
- Légifrance — Code général des impôts
- Direction générale des Finances publiques (DGFiP)
Related guides
Disclaimer: This page provides general tax information based on publicly available primary sources, reviewed on the date shown. Rules are conditional and change; the page may not reflect a change made after that date, and it is not a substitute for advice from a qualified tax professional on your specific situation.