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8.1.1. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty N/A N/A
Payroll Tax 4.25% to 13.6% Payroll tax applies to companies that are not subject to VAT on at least 90% of their turnover (mainly banks and financial institutions). It is distinct from the withholding of income tax on account of employees under the PAYE system, which was introduced in France in the year 2018. The tax is assessed on gross salaries and compulsory or voluntary profit sharing.
Social Security Employer Contribution ~40-45% Employer social security contributions vary depending on the size, type of business, the location and risks but averages around 40-45% of gross salary. The employer contributions include contributions towards health care up to 13%, old-age insurance up to 8.55%, family benefits up to 5.25% and others. The employer contributions also include supplementary pension contributions ranging from 6.01% to 14.57%. Effective 1 January 2020, the maximum monthly and annual limits for social security contributions are EUR 3,428 (previously EUR 3,377) and EUR 41,136 (previously EUR 40,524). The maximum monthly and annual limits for the year 2021 remain unchanged. In response to the COVID-19 pandemic, the tax authorities announced a social security exemption on bonuses paid between 1 June 2021 to 31 March 2022 to employees with a salary lower than 3 times the gross minimum wage. The tax authorities also announced a social security contribution payment assistance for companies with less than 250 employees operating in particularly affected sectors, which includes the assistance of up to 15% of total payroll expenses for June to August 2021.
Social Security Employee Contribution ~20-23% Employee social security contributions average around 20-23% of gross salary, with the contribution limited by certain caps. The employee contributions include contributions towards old-age insurance up to 6.90%, supplementary pension contributions ranging from 4.01% up to 9.72%, and others. The contribution varies depending on the size, type of business, risks borne, amount of annual salary and other factors. Effective 1 January 2020, the maximum monthly and annual limits for social security contributions are EUR 3,428 (previously EUR 3,377) and EUR 41,136 (previously EUR 40,524)). The maximum monthly and annual limits for the year 2021 remain unchanged. In response to the COVID-19 pandemic, the tax authorities announced a social security exemption on bonuses paid between 1 June 2021 to 31 March 2022 to employees with a salary lower than 3 times the gross minimum wage. The tax authorities also announced a social security contribution payment assistance for companies with less than 250 employees operating in particularly affected sectors, which includes the assistance of up to 15% of total payroll expenses for June to August 2021.
Real Estate Tax/Property Tax 3% France levies a 3% real estate tax on the market value of the real estate. Certain exemptions apply, that may be automatic or conditional.
Transfer Tax 0.1%, 3%, 5%, 5.8% The transfer of shares is subject to transfer tax depending upon the type of company. A 0.1% rate applies for shares of a SA, SAS, or SCA. A 3% rate applies for shares of a SARL or SNC, and a 5% rate applies for companies whose value is derived from French real property or real property rights. A 5.8% rate applies to the transfer of French real property.
Stamp Duty N/A N/A
Excise Taxes Varies Excise duties apply for alcoholic beverages, tobacco products, and oil and gas products.
Customs Duty Varies Customs duties are imposed on certain goods imported from outside the European Union.
Territorial Economic Contribution Varies The Territorial Economic Contribution (CET) is comprised of two components; the real-estate contribution (CFE) and the added value contribution (CVAE). The CET is capped at 2% of the added value generated by the taxpayer (reduced from 3% effective 1 January 2021). CFE is charged on the rental value of the occupied property at varying rates depending on the municipality. CVAE is charged based on company turnover. For companies with turnover less than EUR 500,000 a tax relief equal to the amount of CVAE is available. Progressive effective tax rates (i.e., after tax relief) of up to 1.5% apply for turnover exceeding EUR 500,000. Effective 1 January 2021, CVAE stands reduced by 50% due to the elimination of regional share of CVAE.
Financial Transaction Tax 0.30% Financial transaction tax is applicable at the rate of 0.3% to transactions relating to equity shares of publicly traded French companies with a market capitalization exceeding EUR 1 billion as of 1 December of the previous year.