In general, the tax system in France is determined by the votes of the French Parliament, which determine the types of taxes that can be levied and the tax rates that can be applied. Taxes are then collected by the central government, local governments and the Social Security Association (ASSO). All persons who are resident in France for tax purposes are subject to French tax, whether they are individuals or legal entities, whether they live in France or only have their domicile, principal residence, place of work or economic interest in France - they all become so treated taxable. In addition, a person who is a tax resident of France, regardless of nationality, is also taxable on their worldwide income.

There are different types of taxes in the country such as B. Production and import taxes, Value Added Tax or Value Added Tax which is a consumption tax applicable to goods and services located in France, Taxes on petroleum products, Taxes on wealth including local property taxes on real estate, Capital gains taxes applicable on disposal of assets are payable, taxes on the sale of buildings (in addition to local taxes), inheritance, gift, transfer of business and registration of vehicles (total tax should not exceed 75% of income), as well as inheritance and gift taxes applicable to gifts and inheritances attack.

Income taxation in France
Income taxes in France include corporate tax, income tax for individuals, tax for social purposes which is a calculated tax on all income available to individuals in a year and is a subject to industrial and commercial profits, land income, non-commercial and agricultural profits, salaries/wages, pensions/annuities, movable income, capital gains. These taxes are usually payable in the year after the income is earned by filing a French tax declaration stating the total taxable income received. The declaration should be filed by the normal filing deadline.

Personal income tax
Applies to all the incomes gained during any individual business activity in the country. However, those tax payers whose personal net income does not exceed €7,920 are exempted from the income taxation. It is calculated in accordance with the total income of the household which is equally distributed between each member of the household.

Corporate income tax
This type includes annual tax made by corporations and other commercial entities and can be applied to approximately 1/3 of French companies with a standard rate of 33.3% and generally based on company’s turnover.

Capital gain tax
Capital gain tax needs to be paid on the sale of land, buildings, and shares. It includes 19% capital gains tax and a 15.5% social charge which is 34.5% in total. In addition, there is also a supplementary tax on large gains. It comprises 5 different French tax rates depending on the amount of profit gained.

Residence tax
This tax applies to all buildings which have such extras as gardens, garages, private car parks etc. needs to be paid by any person who has a residential unit at his or her disposal.

Land tax
The property tax on built lands is applied to properties built in France. The taxable properties consist of all permanent constructions, i.e. buildings (blocks of flats, houses, workshops, warehouses, etc.). The tax base is equal to 50% of the notional rental value of the building (i.e. the value set by the tax administration) and on land/location value. There are many exemptions and exceptions. In 2005, the product amounted to €17.73 bn.

Professional tax
This tax concerns people who are self-employed in France which amount is calculated by multiplying the taxable net by the rates approved by each local beneficiaries (communities and organizations) within limits set by national legislation.