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France - Other taxes and levies

France - Other taxes and levies

Taxation of international executives


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Social security tax

Are there social security/social insurance taxes in France? If so, what are the rates for employers and employees?

Employer and employee

Employers and employees are subject to various mandatory French social security and pension contributions and payroll levies, which may vary depending on the employer and the type of industry. The employee’s share of these contributions amounts to between approximately 18 percent and 23 percent of gross taxable compensation, depending on the amount of compensation, and is withheld from salary via payroll. The most significant of these social taxes are outlined below. Note that certain caps apply. In addition to the taxes listed below, there are compulsory contributions to retirement plans for which the rates vary depending on the position of the employee and other factors and a specific contribution upon the grant of French qualifying Stock Options or RSUs.

  2015 2016
  Employee Employer Employee Employer
Securite Sociale
Assess Vieillesse (total) 0.30 1.8%
Assess Maladie  (total) Resident 0.75%
12.80% 0.75% 12.84%
Assess Maladie  (total) Non-Res
5.50% 12.80% 5.50% 12.84%
Assess Familiales  (total)   5.25%   5.25%
Aide Logement  *(total)   0.50%   0.50%
Assess Vieillesse  (“A”) 6.85%
Assess Deces  (“A”)   1.50%   1.50%
Aide Logement * (“A”)   0.10%   0.10%
Transport  (total) (only applicable in Paris and suburbs)   2.70%   2.70%
Solidarité Autonomie   0.30%   0.30%
Acc Travail  (total) (depends on company; 1.70% is an average)    1.70%   1.70%
Financement des organisations syndicales (TOTAL)       0.016%
Chomage (ASF “A”) 2.40% 4.00% 2.40% 4.00%
Chomage (ASF “B”) 2.40% 4.00% 2.40% 4.00%
AGS (“A & B”)   0.30%   0.25%
Retraites Comp        
AGFF (“A”) 0.80% 1.20% 0.80% 1.20%
AGFF (“B”) 0.90% 1.30% 0.90% 1.30%
AGFF(“B”) 0.90% 1.30% 0.90% 1.30%
Cadres (ARRCO)  (“A”) 3.05% 4.58% 3.10% 4.65%
AGIRC  (“B”) 7.75% 12.68% 7.80% 12.75%
AGIRC  (“C”) Free
repartition but the total amount between employee and employer must be 20.43%
repartition but the total amount between employee and employer must be 20.43%
Free repartition but the total amount between
employee and employer must be 20.55%
Free repartition but the total amount between
employee and employer must be 20.55%
APEC  (“B”) 0.024% 0.036% 0.024% 0.036%
Mutuelle *0.00% *0.00%    
Taxes Sur Salaries        
Construction  (total)   0.45%   0.45%
Apprentissage  (total)   0.68%   0.68%
Formation Continue **  (total)   1.00%   1.05%
Formation Continue ***  (total)   0.55%   0.55%
CET (Tranche A, B, & C) 0.13% 0.22% 0.13% 0.22%

**if the employer has at least 10 and less than 20 employees
***if the employer has less than 10 employees
****if the employer has more than 20 employees
*****only computes if user enters a rate in the French Input screen.

Other payroll levies exist and are usually collected on the same taxable base as social security but do not give rise to any benefits.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in France?

In the French inheritance tax system, each heir pays taxes on his/her share of the bequest. The key to taxation is the place of domicile (generally, tax residence) of the deceased, not the heir. If he/she is domiciled in France, worldwide assets are taxed, subject to tax treaties; if not, then only French assets are taxed. Life insurance proceeds are generally subject to a 20% flat rate after deducting an allowance of 152,500 euros per beneficiary.

Impôt de solidarité sur la fortune (wealth tax)

France imposes wealth tax upon resident individuals possessing net assets worth more than a certain amount on 1 January of any year. For 2016, individuals are subject to this tax if their net worth exceeded EUR1.3 million on 1 January 2016. The wealth tax rates currently range from 0.5% percent to 1.5 percent, and are applied to worldwide assets. Some income tax treaties cover wealth taxes, and allow citizens of the other contracting State to exempt non-French assets for a limited period of time. Current examples of such treaties include the United States, Canada, Germany, Italy and the UK. See above with regards to temporary wealth tax exemptions for expatriates.

Wealth tax is also assessed on the French based assets of non-residents, within the same limits and at the same rates. For wealth tax purposes, French-source assets are primarily real estate located in France and significant holdings in French companies.

Real estate tax

Are there real estate taxes in France?

The local authorities assess an annual dwelling tax (taxes d‘habitation) on the occupant (owner or lessee) of any dwelling on 1st January any given year. Even if the owner or lessee does not occupy the dwelling on that date, the dwelling tax will nonetheless be assessed if the dwelling is available to the taxpayer. The tax is generally assessed and due in October or November of the same year. The amount is assessed at local rates and based on the annual rental value of the property as indicated in the government's property records.

In addition to the dwelling tax, property owners pay a local real estate tax (taxe foncière) which is assessed once per year and due in the autumn.

Sales/VAT tax

Are there sales and/or value-added taxes in France?

Retail prices on most goods and services reflect value-added tax (VAT), which is currently 20 percent on most goods and services. However, food items, transportation, home repairs and improvement and a few other items are subject to a reduced 10percent VAT, and still others, have ony 5.5 or 2.1 percent VAT.

Unemployment tax

Are there unemployment taxes in France?

Unemployment taxes in France are part of the social charges that are withheld each month from salaries. The employer pays 4 percent of an employee's salary and the employee pays an additional 2.4 percent for a total of 6.40 percent of salary. The salary amount that is subject to unemployment charges is limited to 4 times the social security ceiling (EUR 13,076).

Other taxes

Are there additional taxes in France that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, etc.

Local taxes

Owners of television set pay television tax. Television tax is assessed together with habitation taxes. Other local taxes, such as garbage collection taxes may be imposed, depending on the locality.

Trust taxes

There is a trust tax of 0.5% on trust assets where the trustee has a French connection (ie settler or beneficiaries are situated in France or trust has a French asset).

Double taxation treaties

The following countries have a double taxation treaty with France:

  • Albania
  • Algeria
  • Andorra
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Azerbaijan
  • Bahrain
  • Bangladesh
  • Belgium
  • Benin
  • Belarus
  • Bolivia
  • Bosnia-Herzegovina (EOL*)
  • Botswana
  • Brazil
  • Bulgaria
  • Burkina Faso
  • Cameroon
  • Canada
  • Central African Republic
  • Chile
  • China
  • Colombia
  • Congo
  • Croatia
  • Cyprus
  • Czech Republic
  • Ecuador
  • Egypt
  • Estonia
  • Ethiopia
  • Finland
  • French Polynesia
  • Gabon
  • Germany
  • Georgia
  • Ghana
  • Greece
  • Guinea
  • Hong-Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Ivory Coast
  • Iran
  • Ireland
  • Israel
  • Italy
  • Jamaica
  • Japan
  • Jordania
  • Kazakhstan
  • Kenya
  • Kirghizitan
  • Kuwait
  • Kosovo
  • Lebanon
  • Latvia
  • Libya
  • Lithuania
  • Luxembourg
  • Macedonia
  • Madagascar
  • Malawi
  • Malaysia
  • Mayotte
  • Mali
  • Malta
  • Mauritania
  • Mauritius
  • Mexico
  • Monaco
  • Mongolia
  • Montenegro
  • Morocco
  • Namibia
  • Netherlands
  • New Caledonia
  • New Zealand
  • Niger
  • Nigeria
  • Norway
  • Oman Panama (EOL*)
  • Pakistan
  • Philippines
  • Poland
  • Portugal
  • Qatar
  • Quebec
  • Romania
  • Russia
  • St Martin
  • St Pierre and Miquelon
  • Saudi Arabia
  • Senegal
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • South Korea
  • Spain
  • Sri Lanka
  • Sweden
  • Switzerland
  • Syria
  • Taiwan (double taxation)
  • Thailand
  • TogoTrinidad & Tobago
  • Tunisia
  • Turkmenistan
  • Turkey
  • United Arab Emirates
  • Ukraine
  • United Kingdom
  • United States
  • Uzbekistan
  • Venezuela
  • Vietnam
  • Zambia
  • Zimbabwe*

EOL: Exchange of letters.

© 2019 FIDAL, a French société d’exercice libéral à forme anonyme à directoire et conseil de surveillance. FIDAL is an independent legal identity that is separate from KPMG International and its member firms. All rights reserved.

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