The French are well-known for his or her love of taxes. A listing of 266 taxes levied by the French taxman has just lately been doing the rounds on social media, inflicting fairly just a few raised eyebrows on the pernickety nature of a number of the taxes. (Our private favorite is quantity 62 – a tax on cross-country snowboarding!)
When you delve deeply into most international locations tax programs you will discover hidden costs and charges on many industries and trades. Nonetheless this newest listing has made worldwide entrepreneurs who’ve their companies primarily based within the UK breathe a sigh of aid that the British tax system is far more streamlined.
In addition to the tax system being a lot easier to grasp, the regular company tax fee of 20% makes the UK extraordinarily tax-friendly and welcoming for enterprise house owners and overseas entrepreneurs.
Another benefits within the UK embody the excessive restrict for Capital Positive factors Tax which is simply collected on quantities over £10,000; and a decreased tax for IT and tech startups or firms within the enterprise of innovation or concepts. This tax is named the patent field and as an alternative of paying 20% company tax, they solely pay 10%.
What are the French tax adjustments for 2015?
However regardless of their repute, France is starting to take a leaf out of the UK’s ebook and has lastly began implementing on-line fee programs as an alternative of insisting on rafts of paperwork that wanted filling in and sending off.
A brand new regulation has additionally been introduced that may see staff being taxed solely at their payroll as an alternative of everybody – whether or not self-employed or not! – having to fill in a time-consuming earnings tax declaration. President François Hollande packaged this method swap-over with a supposed “present” to the employees of France – an “année blanche” (a misplaced tax 12 months) the place no earnings tax can be levied for 2017.
This might probably come as a pleasant money-earning benefit to the heads of huge enterprise who might maintain off paying their bonuses or “variable earnings” in 2016 and as an alternative pay it in 2017 once they gained’t be taxed. Nonetheless, nearly all of French employees won’t be benefitting in any respect. It is because the French all the time pay their earnings tax on the earlier 12 months, so they’ll nonetheless must pay tax in 2017 on their 2016 earnings.
On the constructive facet, this variation to payroll tax means a simplified system for workers. And in addition as President Hollande pledged this earnings tax change in his 2012 election manifesto, the French can no less than rejoice in the truth that their President has lastly caught to a promise. So regardless of their repute for dragging their heels within the face of change, it hopefully gained’t be too lengthy earlier than the French tax system resembles that of its European neighbours.
For extra info on UK firm formation in tax-friendly Britain, or particulars on how you can benefit from your tax state of affairs in France – together with knowledgeable recommendation with French tax planning and accounting, please obtain our free information under or contact us along with your questions through our contact web page and we’ll be pleased to discover a resolution.
