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Tax law in France: basic information

Natural and legal persons who carry out economic activity in France must file a tax declaration with the French state and pay various taxes. These taxes that are paid participates in the growth of the country's economy. How is the taxation of individuals in France and what taxes do individuals with tax residence in France pay ? These are all questions that will find their answers in this article.

Taxation of natural persons in France

Individuals domiciled for tax purposes in France are subject to French income tax. The following principles and features apply. Find out more pop over to this site. A person's global income refers to both French source income and non-French source income. This is called "unlimited tax liability" of a person. The determining factor for a person's unlimited tax liability is their tax residence in France. Nationality, on the other hand, has no influence on whether or not French income tax is levied. The calculation of the tax is based on the total income of the relevant tax budget. This calculation also takes into account the size of the tax budget, that is, the number of people living in the household. The income tax of French tax residents is paid as part of the withholding tax. For employees, this means that income tax is levied directly by the employer and paid to the French state. In addition, natural persons may be required to pay taxes on wealth, such as the tax on real estate wealth. However, individuals are only taxable as such if their real estate assets amount to more than EUR 1.3 million net.

Donation or inheritance rights in France

Individuals domiciled for tax purposes outside France may nevertheless have tax obligations in France. You must pay the following taxes in France. It can be noted : A gift made by residents of France, inheritance of residents of France, gifts or inheritance of property located in France. In addition, in the cases mentioned (gift / inheritance) there is an obligation to file a tax declaration with the French tax administration as soon as possible. For persons residing in France, the deadline for filing such a declaration is generally six months.