France's tax system consists of two main categories: direct and indirect taxes. Here's a comprehensive breakdown of what you need to know about taxation in France.

Direct Taxes

Income Tax:

• Applies to all tax residents with earned income
• Deducted directly from wages since 2019
• Progressive rates from 0% to 45%
• Minimum taxable income: €10,085 (as of 2020)
• Average tax amount: €4,529

Real Estate Wealth Tax (IFI):

• Applies to households with real estate assets over €1.3 million
• Progressive rates from 0.5% to 1.5%
• Some assets may qualify for exemptions

Property Tax:

• Paid by property owners only
• Covers both built and unbuilt properties
• Rate based on cadastral value
• Varies by municipality
• Includes household waste collection tax

Residence Tax:

• Paid by property occupants as of January 1st
• Applies to primary and secondary residences
• Being phased out by 2023 for primary residences
• Includes TV license tax

Business Taxes:

• Income Tax: For micro-enterprises, EIRLs, SNCs, SCPs, and EURLs
• Corporate Income Tax:
  • Standard rate: 25% (from 2022)
  • Reduced rate: 15% for SMEs with turnover under €10 million

Indirect Taxes

VAT Rates:

• Standard: 20% (most products and services)
• Intermediate: 10% (restaurants, transport)
• Reduced: 5.5% (basic necessities)
• Super-reduced: 2.1% (press, reimbursed medicines)

Other Indirect Taxes:

• Domestic consumption taxes on energy products (TICPE)
• Registration fees
• Stamp duty
• Customs duty

Key Tax Deadlines:

• Q2: Online income tax returns (May/June)
• Q3: Income tax notices (July/August), wealth tax payment (September)
• Q4: Property tax (October), residence tax (November)

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