France

France’s standard corporate income tax rate is 25%. Qualifying small corporations may benefit from a 15% reduced rate on the first EUR 42,500 of taxable profits, subject to the applicable conditions. Estimated CIT payments are generally made in four instalments during the year. For a 31 December year-end, the return is due on the second working day after 1 May, with 15 extra days when filed online (20 May 2026 for FY 2025).

The headline personal income tax rate in France is 45%, along with additional surtaxes and social surcharges. PIT returns are generally due by mid-May, with final payments due by September 15th. For PIT estimated payments, taxpayers can choose between two instalments on February 15th and May 15th or monthly instalments, with payments made on the 15th of each month from January to October.

VAT in France is imposed on goods and services at a standard rate of 20%. Some goods, such as certain medicines and passenger transport services, are taxed at a reduced rate of 10%, while specific other products like food and books are taxed at a rate of 5.5%. Certain specialized services are subject to a 2.1% VAT rate. Business-to-business (B2B) services are generally taxed at the customer’s location, while business-to-consumer (B2C) services are taxed based on the supplier’s location. VAT applies to registered taxable persons, both full and partial.

France imposes a 3% real estate tax on properties within the country, calculated annually based on the fair market value of the property. All entities in the ownership chain are liable for this tax. There are exemptions for entities where French assets make up less than 50% of total assets, entities listed on regulated markets, and specific pension funds or charities with limited holdings in French real estate. Foreign entities may also be exempt, provided they meet specific criteria.

French employers not liable to VAT on at least 90% of their turnover are subject to a payroll tax. The standard payroll tax rate is 4.25%, but higher rates apply to larger wages. For salaries paid in 2025, the part of each salary between EUR 9,147 and EUR 18,258 is taxed at 8.50%, and the part above EUR 18,258 at 13.60%.