• Raquelle L'Orean

    French income tax

    hozzászóló:  Raquelle L'Orean itt Franciaország fórum 

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    A person who is tax resident in France, will become liable to pay tax on their worldwide income (impot sur le revenue).

    Some income, such as earnings, pensions, rental income and some other forms of investment income is taxed at progressive scale rates that range from 0 percent to a top rate of 40 percent. There is also a fixed rate of income tax of 18 percent at source on bond or bank interest and on capital gains, and by election this can be applied to interest, say, from other EU countries (see below).
    Income Tax Scale Rates for 2008 tax returns based on 2007 Income
    Net Income Subject to Tax Band Tax Rate Tax on Band Cumulative Tax
    Up to €5,687 €5,687 Nil
    €5,688 to €11,344 €5,657 5.5% €311 €311
    €11,345 to €25,195 €13,851 14% €1,939 €2,250
    €25,196 to €67,546 €42,351 30% €12,705 €14,955
    Over €67,546 40%

    The taxable income to be assessed is the total income of the household. To avoid the higher rates of tax where there is a high income, but more than one household member, the family is divided into a number of parts familiales.

    The total income is divided by the number of parts. The income tax scale rates are then applied to this lower figure, and having computed the income tax due, it is multiplied back up by the number of parts.

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