ESTABLISH YOUR BUSINESS IN FRANCE 8 tax questions to ask prior to making your investments in France : 1 - HOW WILL BE TAXED MY INVESTMENTS IN FRANCE ? “It all depends on what you intend to do in France as well as how you are going to invest. From a simple liaison office to test the French market, to the set up of a subsidiary or a branch, the taxation of your investments will vary.”
2 - IS THE CORPORATE TAX RATE GOING TO DECREASE ? “ It is planned that the corporate income tax (CIT) rate will be reduced down to 28 % in 2020, and subsequently down to 25 % in 2022.“
3 - WILL I BE TAXED BOTH IN FRANCE AND IN MY COUNTRY OF ORIGIN ? “ France has implemented Tax Treaties with more than 120 countries, in order to protect your investments against double taxation.“
4 - WHAT OTHER FRENCH TAXES APPLY TO FRENCH COMPANIES ? “In addition to VAT, which is neutral for companies, there are other local taxes. Exemption schemes sometimes help to mitigate their impact.“
5- WHICH INCENTIVES COULD BENEFIT TO MY INVESTMENTS ? “France has very efficient incentive regimes, particularly those focused on R&D, innovation and start-ups.“
6 - HOW CAN I REPATRIATE MY PROFITS ? “Many French tax rules enable a tax efficient and favorable repatriation of the profits.“
7 - HOW CAN I SECURE MY OPERATIONS ? “Taking tax advices, is recommended at all steps of your investments in France, in order to secure the tax conformity of your operations.“
8 - WHAT TAX REFORMS CAN BE ANTICIPATED IN THE FUTURE? “Beyond the decrease of the French CIT rate, numerous measures are expected to further develop the attractiveness of France to foreign investors: a lower labor cost, a company friendly labor law reform, the introduction of a right to error, no VAT rate increase…“