Repatriation of earnings & profits
Since France has signed Bilateral Tax Conventions with most industrialized countries, your international business is likely to obtain beneficial conditions for repatriating profits from the French affiliate. Bilateral Tax Conventions stipulate low, standardized tax rates. A minimum investment of ten percent in the French affiliate company is the only condition for accessing the low tax rate standards.
Affordable local taxes
Besides a couple of contributions at the national level, such as Corporate tax and Customs duties on imports and exports, several types of taxes are administered at a local level, to cover maintenance and services of French districts. Your will pay the rates defined by the local district of your French business investment. Local taxes are calculated on the value of your business premises consisting of buildings and land, and on the added value of your French business activity, in case of exceeding 500 000 Euros. The tax rates are low for a European country, and there are several cases of tax exemption, such as for innovative young business setups and investments in green energy businesses.
Major tax breaks
When you seize the occasion to invest in France today, your investment may benefit from current major tax breaks.
In 2015, the Employment tax break for increasing competitive power and recruitment capability (CICE) will cut the global labor cost with six percent. The tax break calculation is based on your company’s payroll expense. The CICE will add considerable value to your existing business opportunities in France.
The French Research & Development tax break (CIR) will give you a 30 percent break on all types of R&D investments up to the 100 million Euro threshold. The 30 percent rate is quadrupled if you’ve hired junior doctoral research personnel to work in your R&D activity during their first two years of employment. Under certain conditions, the CIR break for your company investment in France can reach the impressive amount of 80 000 Euros.
Having a family is not supposed to be a hinder when doing business in France.
I order to offer your coworkers a sustainable solution for combining work and family life, your business in France can have access to a Family tax break. This break will cover up to 50 percent of your team members’ child care service costs and up to 25 percent of costs for household services.
No need to worry about new and unknown tax rules – as a foreign investor in France you are given direct access to support, provided from the source itself: “Tax4business France” is an information and advisory service directly under the French Government’s Public Finances General Directorate (Direction Générale des Finances Publiques). You will have the best experts answering your questions and giving you advice regarding French tax politics and rules.