Taxes

Direct taxes

The direct taxes are consequently paid and supported by the same person. The “debtor”, the person who pays the amount of the tax, is also the taxpayer, that which supports the tax.
They are regarded as righter than the indirect taxes because one takes account of the incomes and the situation of the imposed person.
A direct tax is regulated on fixed date according to the resources and/or of the inheritance by taxpayers. It personal is even personalized. It is taken directly according to the income of the agent (income tax or on the benefit).

The income tax of natural persons (IRPP)
The income tax is a graduated income poured by the natural persons on the whole of the incomes which they perceived during one year (wages, pensions, incomes of transferable securities, interests, placement). The plate of this tax (the taxable amount) is calculated by making the sum of all the net incomes of possible abatements and deductions specific to each category of incomes and by deducing certain loads (alimonies…).
It taxes only the incomes with the natural persons whose domicile for tax purposes is in France, or the part of the incomes known as of Frenchwoman sources except if the country in which resides the taxpayer concluded an international tax convention with France.
It is a personalized tax because the level of incomes and the situation of the taxpayer are taken into account in the determination of the tax.
It is also a graduated income whose rate of taking away increases with the increase in the income.


Generalized social contribution (CSG)
Come into effect on February 1st, 1991, it is a tax which takes part in the financing of part of the expenditure of Social security. The CSG is a tax which had by the natural persons fiscally domiciled in France. It is taken with the source on the majority of the incomes, whatever their nature and their statute taking into consideration income tax and national insurance contribution. Its rate varies according to the type of income and the situation of interested and it is only partially deductible from the assessed income.

Contribution to the refunding of the social debt (CRDS)
Founded on February 1st, 1996, its duration was increased to 18 years is until January 31st, 2014. This tax is intended to audit the deficit of the general scheme of Social security.
They are taxes proportional: all the taxpayers must discharge the same tax.

Solidarity tax on fortune
It is an annual tax, paid by natural persons holding an inheritance Net higher than 760.000 euros (at January 1st, 2007). It is a declaratory and car-liquidated tax. The people concerned must do themselves a detailed estimate of the value of their goods at January 1st, to calculate the amount of the tax and to send their declaration, accompanied by the check. The tax department can check the return and carry out a rectification during 3 years or 10 years in the event of absence of declaration or omission of a good).

Corporation tax
It concerns the benefit of certain companies and moral persons.

The companies automatically subjected to the IS are:
- public limit companies,
- limited liability companies,
- limited partnerships with share capitals,
- joint stock companies simplified.

Companies subjected on option:
- the EURL,
- partnerships,
- joint ventures,
- certain civil society,
- companies created in fact.
A company is taxable with the IS on its benefit only if it is exploited in France. That wants to say that it must carry on a usual marketing activity there.

Tax with dwelling
It is due by any person (owner, tenant or occupant on a purely free basis) placing in this dwelling to January 1st. All the dwelling houses as the houses and the apartments are fixed with this tax as well as the immediate dependences (like the garage, the handing-over, car parks, rooms of good, gardens, shelters…) if they are not distant of more than 1 km of housing.
Also fixed with the tax, buildings subjected to the professional tax, if they form integral part of the dwelling of the owner (waiting room of a doctor also being used as living room).
The furnished but non-occupied second home is subjected to the tax of dwelling. One regards as furnished, the room furnished with sufficient pieces of furniture to allow the normal dwelling of it. It is not necessary to take account of the empty parts, since the remainder of the dwelling is sufficiently furnished.
The empty residences intended for the hiring are not taxed. The buildings being used for the rural exploitations, the offices of the civil servant, the buildings liable to the professional tax which do not make integral part of the owner-occupied housing of the debtor are exonerated.
The tax of dwelling is calculated starting from the cadastral value of the dwelling.

Local taxes: they are non-progressive. Their final destination is the budget of the local government agencies (common, departments, areas…).

Real estate tax: it is a local tax due every year by the owner of a real estate.
Real estate tax on the built properties: the built buildings indicate the constructions and buildings high above the ground or built in basement. For the private individuals, they are the buildings of dwelling and the car parks of which they are owners or usufructuaries, that they are or not occupying places. The commercial, industrial or professional buildings are imposed on the real estate tax. The tax is due by the owner of the good to January 1st of the year of assessment.

Real estate tax on the undeveloped properties: it is established annually at a rate of the detention of the undeveloped properties of any nature located in France except for those which are the subject of permanent exemptions (public properties) or temporary (various measurements of encouragement to agriculture or the afforestation). It is due by any person, owner or usufructuary at January 1st of the year of assessment, of a ground not built some is its nature.

Tax with removal of the household refuse: it makes it possible the local government agency to ensure the service of collection or treatment of the household refuse. This tax is based on the real estate tax built property.

Professional tax: It is a tax perceived with the profit of the communes of France, French departments and French areas. The professional tax relates to only the companies. It is due each year by any French or foreign natural person or moral who carries on in France on a purely usual basis a non wage-earning community activity. The tax is established in each commune where the debtor lays out of buildings or grounds, for these buildings or these grounds.

Indirect taxes

The indirect taxes are poured by the indebted companies or people but are reflected on the selling price of a product; they are supported by another person, the taxpayer. They are easier to collect because the number of debtors is less.
An indirect tax touches an operation without considering the differences in situation between taxpayers since it is impersonal and, very often, proportional. It is taken on expenditure.

The Tax on added-value (VAT)
It is calculated on the added-value of the companies (difference between their turnovers minus the purchases with the other companies lasting less than one year). Each company enters the VAT on its sales and deduced the VAT paid on its purchases. The normal level is of 19,6% of the price net of tax.
There exists a reduced tax with 5,5% on certain food products, transport, the school canteens, the books, the subscriptions of electricity and gas, renovation works and of maintenance of the residences.
A rate of 2,1% is applied to the refunded drugs and the press.
The VAT also applies to the imports including the products bought abroad by the consumer on Internet.

The Excise tax on oil products (TIPP)
It applies to any hydrocarbon consumption used like fuel or for the heating (except for the solids like coal, the peat or the lignite). The natural gas is subjected to a particular tax.

Recording, stamp and other contributions
The fees registration and of stamp are charged at the time of an obligatory formality for certain acts such as the recording of a company at the time of the declaration of moral person. The recording will constitute a proof of existence.

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