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France - Overview and introduction

France - Overview and introduction

Taxation of international executives

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The extent of individuals’ liability to French income tax is determined by their residence status, the type of income they receive, the source of that income and the terms of double taxation treaties. 

Tax residents of France are taxable on their worldwide income, subject to the provisions of the relevant tax treaty.

Non-residents are subject to income tax in France on their French-source income only, subject to the provisions of the relevant tax treaty.

There is no general definition of taxable income. Taxable income is the aggregate result of various income categories such as:

  • Employment income;
  • Income from a trade;
  • Income from a profession;
  • Income from immovable property (rental income);
  • Agricultural income;
  • Income from movable property (investment income);
  • Capital gains from the sale of moveable property or from the sale of immoveable property.

Income tax is imposed only at the national level.

Other taxes include the contribution on high income earners, social contributions, wealth tax on real estate, dwelling tax, inheritance tax, real estate ownership tax, and television tax, to name the most common.

In addition, retail prices generally reflect value-added tax (VAT), which is currently 20 percent on most goods and services. However, transportation, home repairs and improvement and a few other items are subject to a reduced 10 percent VAT, food items and a few other items are subject to a reduced 5.5 percent VAT, and still others, such as certain medicines have only 2.1 percent VAT.

The official French currency is the Euro (EUR).

Herein, the host country/jurisdiction refers to the country/jurisdiction where the expatriate is going on assignment. The home country/jurisdiction refers to the country/jurisdiction where the expatriate lives when they are not on assignment.

Disclaimer:

All information contained in this publication is summarized by KPMG Avocats, the French member firm affiliated with KPMG International Limited, a Private English company limited by guarantee. The information contained in this publication is based on the French General Tax Code (Code General des Impôts-CGI), the French tax administration’s official doctrine (as published on Bofip), the French tax administration’s website, The French social security websites (urssaf.fr), the French international social security body (cleiss.fr) and supporting information published by the Ministry of Economy, Finance and Industry

© 2021 KPMG Avocats, société d’avocats de droit français, membre de l’organisation mondiale KPMG constituée de cabinets indépendants affiliés à KPMG International Limited, une société de droit anglais(« private company limited by guarantee »). Tous droits réservés. Le nom et le logo KPMG ainsi que le nom KPMG Avocats sont des marques utilisées sous licence par les cabinets indépendants membres de l’organisation mondiale KPMG.

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