Income tax (France)
The income tax in France ( impôt sur le revenu , abbreviated: "IR"; sometimes also: "IRPP" for impôt sur le revenu des personnes physiques ) is a direct tax that was introduced in 1914 in connection with the financing of war. After VAT, it is the state's second most important source of income. The legal basis is the “ Code général des impôts ”.
history
In France, Finance Minister Joseph Caillaux is considered the father of income tax . On February 7, 1907, he had submitted a bill to introduce a proportional tax based on the British model, which would be determined independently for each type of income, supplemented by a progressive tax on total income, which in turn was based on the German model. On March 9, 1909, the Chamber of Deputies adopted this law, but it was immediately blocked by the conservative Senate. It was finally adopted on July 3, 1914. In 1917 it was revised. However, other changes soon followed. In 1926 the “tax on doors and windows” ( l ' impôt sur les portes et les colonnes ) introduced by the Directory on November 24, 1798 during the French Revolution was repealed.
scope of application
In principle, only natural persons are subject to the Income Tax Act. In the case of partnerships, however, if certain forms of a company exist under civil law, its business profits may also be included.
The French income tax law applies only to individuals who are tax resident on French territory and to income from French sources, unless France has a double taxation agreement with the country in which the taxpayer is resident has completed.
Income tax return
Every year, the taxpayer has to declare his income from the previous year before the end of a fixed period (usually the end of May) - even if he does not have any taxable income during this period. The forms required for this can be downloaded online from the web address of the Administration fiscale française . Anyone who has already submitted a corresponding declaration in the previous year will receive a specially prepared form ex officio, which only needs to be modified appropriately by the person making the declaration. The declaration can also be submitted in electronic form.
In accordance with a law of 1990, the income tax return must be accompanied by a declaration from French taxpayers as to which bank accounts still exist or have been closed abroad in the relevant tax year.
Income tax rate
Income of over 150,000 euros is taxed at 45%. The former French President François Hollande announced in the 2012 presidential election campaign that he wanted to increase the top tax rate significantly: The tax rate for incomes of more than 1 million euros should be 75%. The 75% tax rate was overturned by the Constitutional Council at the end of December 2012 . The council did not criticize the amount of the tax, but the unequal treatment of households depending on the income distribution.
The following table applies to 2014, with higher marginal tax rates (so-called wealthy tax ) being introduced for parts of the income over EUR 250,000 .
| Income in euros | Marginal tax rate | Additional marginal tax rate |
Marginal tax rate total |
|---|---|---|---|
| to 6,011 | 0 % | 0% | 0 % |
| 6,012 - 11,991 | 5.5% | 0% | 5.5% |
| 11,992 - 26,631 | 14 % | 0% | 14 % |
| 26,632 - 71,397 | 30 % | 0% | 30 % |
| 71,397 - 151,200 | 41 % | 0% | 41 % |
| 151,201 - 250,000 | 45 % | 0% | 45 % |
| 250,001 - 500,000 | 45 % | 3% | 48 % |
| over 500,000 | 45 % | 4% | 49 % |
Taxable Income
There are eight types of income:
- 1) Salaries and pensions ( les traitements, salaires, pensions et rentes viagères )
- 2) Remuneration of executive employees ( les rémunérations des dirigeants de société )
- 3) Profits from trade and commerce ( les bénéfices industriels et commerciaux (BIC) )
- 4) non-commercial profits ( les bénéfices non commerciaux (BNC) )
- 5) Profits from agricultural activity ( les bénéfices agricoles (BA) )
- 6) Income from real estate ( les revenus fonciers )
- 7) Income from valuables ( les revenus mobiliers )
- 8) Increases in the value of real estate, valuables and work-related goods (is taxed at a flat rate) ( les plus-values immobilières, sur valeurs mobilières, sur biens meubles et professionnelles )
See also
Web links
Single receipts
- ↑ Il faut déclarer ses comptes au Luxembourg , l'essentiel, January 30, 2012
- ↑ Hollande announces tax increases in the billions , zeit.de September 10, 2012
- ^ France's Constitutional Council stops wealth tax , Süddeutsche Zeitung , December 29, 2012