France

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Country Knowledge

Our local member provided the following preliminary information about doing business in this country.
Please contact the firm for more information and obtain professional advice in each country concerned.
Our local member will be happy to help you proceed with your business!

General information

Languages :

  • French

Population : 67 million

Currency: Euro

Current Exchange Rate to USD: $1.09

Standard corporate income tax rate:

25% starting 1/1/23

Main tax incentives:

R&D Credit

Standard dividend withholding tax rates:

Depending whether you are a parent or not: 12,8 or 25%
if the parent company is located in France and a mother daughter regime has been set up, it is tax free plus a 5% tax for costs and expenses

Branch taxation:

25% for non EU non resident corporation. It can be lower depending where the head office is located (tax integration scheme, tax treaty etc)

Standard Interest withholding tax:

Depending whether a parent company or not is involved: 12.8% or 25%
if the parent company is located in France and a mother daughter regime has been set up, it is tax free plus a 5% tax for costs and expenses

Interest expense deduction rules:

interest expense is deductible

Standard royalty withholding tax rate:

25 %

Laws and government

Civil law: Yes

Religious: Secular

Federal / national only?: National only

EU member ?: YES

Data privacy rules?:

GDPR

Standards & Tax treaties

Number of tax treaties: 121

OECD MLI treaty signatory?: YES

Type of tax: VAT

Taxes on foreign products?: Yes

Taxes on foreign services?: VAT on B2C e-commerce supplies and reverse charge VAT on B2B supplies

Typical time and cost to incorporate a local private company: The budget is around 1500€ all included. It takes, in general, no longer than a month to register a local private company

Typical time and cost to register a branch of a foreign company: If no company is set up, 500€. Same amount of time

Typical business/tax/other issues in the country:

In France, the administration is very heavy as such it might take longer to solve some easy corporate issues.
Other important point, starting July 1st 2024, all companies operating in France must be able to receive and process electronic invoices. After January 1st 2026, companies of all size must send and receive electronic bills only.

The information provided on this website is intended for general informational purposes only and should not be construed as professional advice. While our members make every effort to ensure the accuracy and reliability of the information presented, we cannot guarantee its completeness, timeliness, or suitability for any particular purpose.

We strongly recommend that you seek professional advice from a qualified expert in the relevant field before making any decisions or taking any actions based on the information provided on this website. Your reliance on any information presented on this website is at your own risk.

Please note that the information on this website is subject to change without notice, and we assume no responsibility or liability for any errors or omissions in the content. By accessing and using this website, you agree to release us from any and all claims, liabilities, and damages arising from your use of the information provided herein.

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