Code General des Impots (General Tax Code)

Introduction

The Code General des Impots (CGI) is the primary French tax code, governing income tax (impot sur le revenu), corporate tax (impot sur les societes), value-added tax (TVA), and various indirect taxes.

Income Tax

France imposes a progressive income tax on individuals. The tax is calculated on a family quotient basis (quotient familial), which divides household income by the number of shares to determine the applicable rate. A flat tax (prelevement forfaitaire unique) of 30% applies to investment income.

Corporate Tax

Corporate tax (IS) applies to profits of companies. The standard rate has been progressively reduced from 33.33% to 25%. Small and medium enterprises benefit from reduced rates on the first portion of profits.

VAT

France applies VAT (TVA) at a standard rate of 20%, with reduced rates of 10%, 5.5%, and 2.1% for specific goods and services. The Direction Generale des Finances Publiques (DGFiP) administers tax collection.