the corporate tax rate ?
The portfolio of clients we support consists of structures with sales of less than €8 million in our territory, and for which the tax rate (in 2020) will be :
- 15% up to 38 K euros of pre-tax income
- 28% beyond
The condition for benefiting from these rates is to have more than 75% of the share capital owned by natural persons, at the level of the French structure or even at the level of a structure in the world owning the French structure.
If this condition is not fulfilled or if the entity in France is not a subsidiary but a branch, the rates become :
- 28% up to 500 K euros of pre-tax income
- 31% above
Corporate tax is payable by four quarterly instalments plus one balance.
What is the VAT rate
in France ?
Let us remind that France being a member of the EU European Union, the European VAT rules apply for the supply of goods, services, international transactions and exceptions on certain products or services.
The normal rate is 20% in France. Reduced rates exist on certain products, services, destinations: 10%, 5.5%, 2.1%, etc.
Normally, VAT is paid monthly (but it is possible to pay quarterly or annually if certain thresholds are not reached).