Personal Income Tax in France

Personal income tax in France is a tax on all income available to individuals in year. The personal income tax is also levied on all private persons. In the case of partnerships, which have not chosen to pay the corporate income tax, the personal income tax is payable by each partner. Individuals' total income is taxed if they are domiciled in France, whether they have the French nationality or not. Persons not living in France are taxed only on their income from French sources. Subject to income tax are in France these categories:
• income from industrial and commercial
• income from the land
• income from salaries
• income from wages
• income from pensions and annuities
• income from the movable
• income from capital gains
The personal income tax from income from employed work and from capital income paid the employers or the banks, when the earnings are paid out (the tax is immediately transferred to the tax authorities every month). France is a signatory to a Treaty for the Prevention of Double Taxation with many countries all over the world. These agreements under public international law aim to avoid one and the same taxpayer being charged similar taxes more than once on the same income for the same period.

Tax due date
The personal income tax has to be paid usually by latest 15 of September of the next year. Some has to be paid earlier, either by third or on a monthly basis.

Tax rate
In France is personal income tax progressively. The tax base is made up of the sum of the incomes of all the individual members of the household tax. In 2008 is tax rate from 0 % to 40 %. No income tax is charged on the basic allowance, which is 5 614 EUR.

Tax deductions and exemptions
Exemptions are made for social reasons. For instance:
• persons, whose net income does not exceed 11 265 EUR, this threshold rises to 8 660 for people over age of 65
• invalidity pensions
• statutory family benefits
• interest on certain government loans
Some expenses by the household tax are deductible from total income. There can be cuts and maximum taxable amounts of the income. For instance: an allowance of 40 % is applied to the dividends. Taxpayers whose tax is less than 828 EUR are entitled to a reduction.

Solidarity tax on wealth
The solidarity tax on wealth in France is an annual tax payable by individuals when they own the heritage of which the net value exceeds a certain amount. Taxpayers are the individuals who are living in France or who own property situated in France, and whose heritage has a value of more than 760 000 EUR on 1 January of the tax year. The tax base includes all property rights (buildings built or not, individual businesses, farms, movable furniture, financial investments, cars...). The rate is:

Bc. Petr Gola