French tax

France has a very complete tax system, which is typical of western countries.

I. Principles of tax system

The establishment, operation and reform of French tax system are based on a series of principles. Now briefly described as follows:

(A) the principle of the rule of law

First of all, the French Constitution stipulates the status of the tax system. Article 34 of the Constitution of People's Republic of China (PRC) stipulates that the rules, methods and tax rates of taxation shall be determined by law. Article 34 of the Constitution also stipulates that the establishment of the tax system should be based not only on national interests, but also on local interests.

Second, the entire French tax system is managed and regulated by the General Import Code. The collection, distribution, punishment and inspection of all taxes shall comply with the general tax law. The detailed rules for the implementation of various decrees are also formulated according to the nature of the tax system stipulated in the general tax law and the Constitution, and are supervised by the administrative court.

Third, the scope of taxation, tax rate, establishment of new taxes, cancellation of taxes, etc. It must be passed through parliamentary legislation in the form of a bill to take effect.

Fourth, all tax disputes must be resolved through judicial channels and according to law.

(B) the principle of openness

The tax system is a system represented by the state, which levies taxes on people's various incomes and economic behaviors. Therefore, only representatives of the state can collect taxes. The whole tax collection department is a state institution, and its staff are all state civil servants. The central government exercises unified leadership over the tax authorities.

(3) the principle of equality

Everyone is equal before the law. This principle is manifested in taxation, that is, when there is a tax dispute between an individual and the state, and when there is a dispute between an individual and a tax agency, both parties will solve it through law on the basis of equality.

There is also the principle of equality in tax collection, that is to say, if the tax regulations are aimed at a certain type of income, then all people with such income must pay the same tax, without exception. For established tax standards or regulations, the corresponding taxpayers are equal. There will be no situation where some people use one standard and some people use another.

(4) The principle that the rich pay more and the poor pay less.

This is a basic principle of French tax rate policy. For example, income tax is a highly progressive tax system. The higher the income, the higher the tax rate, and vice versa.

These are the four basic principles of the French tax system.

Two. Tax list

Generally speaking, French taxes can be divided into four categories, namely income tax, consumption tax, capital tax and local tax.

(1) income tax

The concept of income tax refers to the taxation of income from various professional and economic activities such as work, investment and management. However, the concept of this tax is not precisely defined in the relevant tax laws, which seems to leave enough possibilities for the formulation of future tax policies.

Specifically, the concept of "income" is not only monetary form, but also various non-monetary forms of income such as physical objects can be classified as "income income". In addition, the cost, price, burden, etc. The income paid for this can generally be deducted from the income, and the rest can be counted as "taxable income" as net income. Income tax is divided into two parts: corporate tax and natural person tax.

1. Corporate tax (is: social import)

This is an income tax levied on legal persons. All joint stock limited companies and limited liability companies operating in France, regardless of the type of their business activities, whether domestic or foreign companies, must levy this tax. However, some types of personnel combination companies, such as collective name companies and civil companies, do not need to pay such corporate tax in principle. However, the personnel of these companies can make a choice: whether to pay the income as personal income tax or corporate tax. Once a decision is made, it cannot be changed. In addition, if the activities of cooperatives, associations and the public sector are profitable, they must also pay corporate tax. Some mutual aid organizations and associations can enjoy tax exemption if their business does not pursue high profits.

Corporate tax is a tax on the company's net profit. This net profit is shown according to the balance sheet (BILAN) prepared by the accountant for the company's annual operating results. In tax law and accounting law, there are clear provisions on the calculation, depreciation, cost, expenditure and inventory of net profit, so there is no possibility of confusion in the definition of net profit.

At present, the tax rate of the company's net profit is 36.6%. As for unprofitable or loss-making enterprises, they only need to pay the prescribed basic tax.

In addition, the tax authorities also implement different tax rates or tax reductions and exemptions for enterprises according to their specific conditions:

1) If it is a start-up company, the company is exempt from tax for two years, 5% in the third year, 50% in the fourth year, 75% in the fifth year and paid in full in the sixth year.

2) Long-term appreciation of the company's assets is only taxed at the company tax rate 18%.

3) Non-profit local collective civil companies engaged in real estate or chattel shall pay taxes at the low tax rate of 10% to 20%.

4) The profits of small and medium-sized enterprises used for reinvestment shall be taxed at the rate of 20.9% within 200,000 francs stipulated by the left-wing government.

2. Personal income tax

This is a tax on natural persons, that is, individuals.

Personal income tax is a tax levied on all individuals with income. Its principle is to adopt a high progressive system according to different incomes: that is, to divide different tax bands according to people's income. At the same time, according to each person's different situation, the family tax parameters with or without children are calculated after deducting the expenses of family and occupation.

The following three categories of people need to pay personal income tax:

1) Anyone whose family and principal residence are in France, that is, those who have lived in France for six consecutive months (i.e. 183 days);

2) Anyone engaged in major professional activities in France;

3) Anyone with significant economic interests in France.

Therefore, anyone who meets one of the above three conditions, regardless of whether his nationality is France, must declare and pay taxes on all his income (whether in France or abroad).

Anyone who does not belong to the above three categories, that is, people who do not live in France, must pay taxes on their income in France.

According to the new tax law 1998, the tax rate is:

(1) Anyone with an annual income of less than 25,890 francs does not have to pay taxes.

(2) If the annual income is between 25,890 francs and 50,930 francs, the tax rate is 65,438+00.5%.

(3) If the annual income is between 50,930 francs and 89,650 francs, the tax rate is 24%.

(4) If the annual income is between 89,650 francs and 65,438+045,65,438+060 francs, the tax rate is 33%.

(5) If the annual income is between 145, 160 francs to 236, and 190 francs, the tax rate is 43%.

(6) If the annual income is 236, 190 francs to 2965,438+0,270 francs, the tax rate is 48%.

(7) If the annual income exceeds 2,965,438+0,270 francs, the tax rate is 54%.

The above standards are all single people's tax standards. Personal income tax in France is levied by family. For example, if a taxpayer has two couples, they will fill out the tax bill together and divide their total income by 2 to calculate. The standard is the same as above If there are children to bear, the total income of two people should be calculated by subtracting the share of children (one child is half share).

Therefore, the above standard is only a reference standard. There are many other items that can enjoy tax reduction or exemption: for example, 10% is deducted from wage income, and then 20% is deducted as working expenses, the interest on house purchase loan can be reduced or exempted, the interest on consumer loan can be reduced or exempted for a certain period of time, the renovation and improvement of old houses and facilities can also be reduced or exempted, and pension, charitable donations, investment in life insurance and investment in rental housing industries can also be reduced or exempted. Therefore, in fact, the declared taxable income is paid at the above tax rate after enjoying various exemptions and reductions.

In 2002, the right-wing government returned to power. In order to fulfill his campaign promise, personal income tax will be reduced by 5% this year and 30% during the current government term.

What we introduced above is the income tax situation. Both corporate income tax and personal income tax are based on direct taxation of income, so they are direct taxes.

(2) Consumption tax

Consumption tax is a tax that people pay to the state when they consume. This kind of tax is included in the commodity price and paid by the businessman to the state, so it is an indirect tax.

Consumption tax is divided into the following three categories:

1. VAT

This is the most important consumption tax in France and the largest tax in the national fiscal revenue.

Value-added tax refers to the tax levied on various commercial transactions according to a specific proportion in the field of commercial circulation. This commercial transaction can be physical (such as commodity trading) or non-physical (such as various services).

There are two types of VAT rates:

1) Basic food, books, country hotels, plays, concerts, medicines, etc. The tax rate is 5.5%.

2) For other goods and services, the tax rate is 19.6%.

2. Alcohol, beverages, tobacco and alcohol taxes

This tax is levied at different tax rates according to different goods and different sales methods. For example, the tobacco tax rate is as high as 75.99%, and it is still rising. Besides the VAT of 20.6%, alcoholic beverages are subject to the tax of 15% to 20%. In addition, those who sell alcoholic beverages have to pay taxes, and the amount varies.

3. Fuel tax

France is the country with the heaviest fuel tax in Europe, with a tax burden of over 80%. Although the duty-free price of French gasoline is the lowest in Europe, the sales price is very high because of the heaviest tax.

(3) Capital tax

Capital tax includes various taxes related to capital and family property, such as property transfer tax, property inheritance tax and super-rich tax.

1. Registration, registration tax

All official registration activities must pay taxes to the government, such as car registration, stamp duty, company establishment registration, marriage contract conclusion, pre-sale or pre-purchase contract registration, residence permit issuance, patent application, loan contract, etc. Various standards are published by the tax bureau. All civil and criminal contract behaviors are generally subject to tax registration with the government, with different tax rates and various standards announced by the tax bureau.

2. Property transfer tax

Property transfer tax refers to the tax levied by the state in the transfer of movable property and real estate such as transaction, sale, gift and inheritance, and its tax rates vary greatly. For example, the transfer tax on the sale of old houses is about 9%, and the inheritance tax is 5% to 60%. These acts must be notarized by a notary. In addition to the above transfer tax, the notary service value-added tax should also be levied.

3. Property value-added tax

The appreciation of all movable property (such as bonds and stocks) and real estate (such as real estate) must also be taxed. This is different from income tax: dividends from bonds and stocks should be taxed as income, but their appreciation is taxed according to this tax. At present, the VAT rate of movable property is about 15%. Real estate value-added tax rate, short-term value-added within two years, the value-added part is included in the total income, calculated according to income tax; If it is a long-term appreciation of more than two years, after deducting the annual appreciation of 5% (tax relief and currency appreciation factors), the tax will be levied according to the total income through "parameter calculation". Whether it is movable property or immovable property, tax is paid only after appreciation: that is, after the buying and selling behavior is over, the parties concerned will pay tax only after appreciation.

4. The super-rich tax (IGF: the wealth of the imported super-rich)

This is a tax levied on people with certain wealth, also known as the solidarity tax. This tax is set at 1982.

The super-rich tax stipulates that when the total amount of personal movable and immovable property exceeds a certain limit, the super-rich tax must be paid. At present, this limit is set at 46 1 000 francs, and the tax rate ranges from 0.55% to 1.65%. It is also taxed in a progressive way, that is, the more wealth, the more taxes.

(4) Local taxes

In France, the tax burden paid to the central government is far heavier than that paid to local governments. Local tax revenue only accounts for about 20% of the total tax revenue. The beneficiaries of local taxes are local governments at regional, provincial and municipal levels. Local taxes are divided into the following categories:

1. Construction property tax

This is an annual tax levied on people who own real estate, factories and their affiliated real estate. The tax rate is calculated according to the rental value, and the standards vary from place to place.

2. Non-construction real estate tax

This is an annual tax levied on people who own non-construction real estate, and the tax rates vary from place to place.

3. Residence tax

This is an annual tax levied on residents, and both landlords and tenants must pay it. The tax rate is comprehensively calculated according to the rental value, residential area and income, and there are also great differences in different places.

4. Elle, a tax major

Occupational tax is a local tax levied on all legal persons or natural persons engaged in non-wage occupational activities. Enterprises are the main source of this tax. The tax rate is also calculated according to the rental value of each place and the parameters of various industries, and paid once a year.

5. Road cleaning tax and garbage removal tax

These two taxes are also levied annually and paid by the owner or tenant.

(5) Tax proportion

The proportion of various taxes in France's overall tax revenue varies greatly, which reflects a series of basic characteristics of the French tax system.

1. Corporate tax (IS), accounting for 9% to 12% of the total tax revenue. The proportion of corporate tax is closely related to the economic situation. If the economy is good, corporate tax accounts for a large proportion, and vice versa.

2. Personal income tax (IR) is generally around 16% to 2 1%. When the national economy is improving and the tax sources are sufficient, the government tends to reduce the personal income tax, which makes the proportion of this part of the tax revenue decrease. When the economy is bad and the tax amount drops, individuals have to pay more taxes.

3. Value-added tax (TVA) accounts for the largest proportion of national tax revenue, so the state attaches great importance to this tax and spares no effort to recover it from enterprises. Its proportion in the total tax revenue is about 30% to 45%.

4. Domestic petroleum product tax, tobacco and alcohol tax, etc. , generally accounting for 5% to 10%.

5. Local taxes, accounting for about 10% to 15% of the total tax revenue.

6. Transfer tax and transaction tax on various property transfers and financial transactions account for about 6% to 10% of the total tax revenue.

From the above ratio, it can be seen that France has little tax pressure on personal income, but various indirect taxes, such as value-added tax, petroleum product tax, tobacco and alcohol tax, various property transfer taxes, financial transaction tax and so on. The tax burden is very heavy. This is a major feature of the French tax system.

Three, the tax department's organizational structure and scope of power

French tax authorities are directly managed and controlled by the central government and have a strict organizational structure from top to bottom.

Financial sector

French tax authorities are subordinate to the national financial and budgetary management system. The highest decision-maker of this system is the Ministry of Economy, Finance and Industry. The Ministry is responsible for formulating and implementing national economic policies and economic plans. In terms of budget, the Budget Department of the Ministry is responsible for formulating the national budget and submitting the annual budget (fiscal bill). The division will also supervise the implementation of the budget to ensure that all kinds of expenditures are in line with the items and amounts allocated in the budget. As the representative of the country, the financial inspectors of this department are stationed in major administrative departments to conduct pre-inspection and audit before capital expenditure, and jointly manage the capital activities of various ministries with relevant ministers.

According to the budget and ministerial order, French tax authorities implement tax laws, calculate tax rates, collect taxes and check taxes. Directly connected with the tax department, there is also the French accounting department, which is responsible for tax collection and budget revenue and expenditure.

(2) Tax authorities

DGI belongs to the Ministry of Economy, Finance and Industry, and is at the same level as the Ministry of Budget, the Ministry of Public Accounting, the Ministry of Finance and the Ministry of Foreign Economic Relations. The bureau is responsible for tax rate calculation, tax standard formulation, tax collection and tax inspection. However, customs duties are the responsibility of the General Administration of Customs and Indirect Taxation. In addition, corporate taxes and indirect taxes are also the responsibility of the public accounting department.

The French State Administration of Taxation has four levels of institutions:

1. The national and international tax inspection bureau system is responsible for the verification, inspection and punishment of domestic and international taxes.

2. The regional tax bureau is the system responsible for regional tax work.

3 Provincial Taxation Bureau, responsible for provincial tax work.

4. The town tax office is responsible for the tax work at the grassroots level such as towns.

The French tax system * * * has more than 85,000 staff members, all of whom are civil servants, and they are divided into different levels according to the ranks of civil servants. Officials in charge of taxation in all regions and provinces are appointed and managed by the Ministry of Economy, Finance and Industry, and the taxation department is under the unified command of the state, and the localities have no right to ask questions. Therefore, it has a strong centralized color.

As we mentioned above, tax agencies and public accounting agencies are closely related and different. The Ministry of Public Accounting of the Ministry of Economy, Finance and Industry has a provincial public accounting bureau, a financial bureau in the financial district below the province, and a financial office in the town. This institution, collectively known as accounting net, is responsible for the implementation of the national budget. In this way, the formulation and collection of taxes (belonging to the tax bureau system) and the collection and refund of taxes (belonging to the public accounting system) are separated, and they are closely related and play a role in mutual supervision.

As a means of financial supervision, France has also set up a financial director in the Ministry of Economy, Finance and Industry, with great power, and all public accounting affairs, whether national, local or individual enterprises, are under its supervision. In addition, France has established an independent audit court, which is authorized by the parliament and is not controlled by administrative power, and is responsible for examining the financial accounts of public institutions such as government departments and state-owned enterprises. The organization has about 250 people.

Therefore, from taxation to public accounting and treasury revenue and expenditure, it is subject to double supervision and control.

(3) the scope of power of the tax authorities

The power and scope of French tax authorities are completely determined by law.

The first is to calculate the specific amount of various taxes according to the tax rate of financial bills, and tax legal persons and natural persons. If an individual receives an income tax return every year, please fill it out and send it to the tax bureau. The tax bureau will calculate the tax payable according to different tax rates and the specific situation of each person and return it to the taxpayer. Taxpayers will pay their taxes to the TRESOR PUBLIC before the specified date.

Secondly, the tax authorities have the right to audit the accounts of companies and individuals, to require the audited entity to show all accounting accounts and bank accounts, and to require the audited entity (natural person or legal person) to explain all details. The tax authorities also require all administrative departments and enterprises to provide relevant information and intelligence. This is called the "right to know" of the tax department.

Third, after tax inspection and tax verification, the tax authorities have the right to impose fines on taxpayers and demand them to pay interest on tax arrears. These fines, overdue taxes, overdue interest payments, etc. It should be carried out in accordance with laws and regulations, and it should be decided by the tax authorities according to the specific situation of taxpayers. In this way, the tax authorities have a certain degree of freedom.

Fourth, when a taxpayer refuses to pay taxes or fines, the tax authorities have the right to use all financial and economic means to seize or offset the taxpayer's property or forcibly recover the taxpayer's income. The relevant administrative departments, whether central or local, must assist the tax authorities in their actions, otherwise it is illegal and can be charged with crimes.

The above four provisions give the tax authorities great tax action power, assisted by the national police, the national gendarmerie, the courts and other judicial circles and administrative departments at all levels. Therefore, some people say that as far as the tax system is concerned, France is not a democracy, but a police country.

(4) Civil rights and tax litigation

The tax system is mandatory for taxpayers, that is, citizens, so how to protect the rights of citizens?

If an individual or company has a dispute with the tax department, it will be resolved through administrative courts and administrative tribunals. However, if indirect taxes are involved, they can appeal to the ordinary judicial system, such as the main court, the court of appeal and the higher Supreme Court. On the other hand, if the taxpayer intentionally evades taxes and violates the tax law, the tax authorities can sue the taxpayer in criminal courts, usually in misdemeanor courts.

The above judicial system ensures that when there is a dispute or lawsuit between the taxpayer and the tax authorities, the taxpayer's interests can be protected by law through the judicial department independent of the administrative system.

In terms of specific procedures, taxpayers can appeal to the higher authorities of the tax department first, and then to the provincial tax Committee. These two steps are procedures for resolving disputes with taxpayers within the administrative department. Third, you can appeal to the administrative court and start the judicial process. Fourth, you can appeal to the administrative court of appeal, which is an appeal against the judgment of the administrative court. Fifth, you can appeal to the administrative court. This is the highest appeal. This is a step taken by many taxpayers in disputes with tax authorities. Generally speaking, people can ask for the assistance of lawyers from the beginning of tax investigation. This is also an important step to ensure that taxpayers' rights and interests are not infringed.

Four. Social donation system and tax examples

We have briefly introduced the French tax system above. However, for a taxpayer and an enterprise, this is not all. To truly understand the whole French tax system, we must involve the social contribution system. Taxes and social contributions add up to form a complete compulsory tax system, which has an important impact on the economic life, political life and daily life of ordinary French taxpayers.

Social contribution

France is a welfare state, and people's health, illness, death, unemployment, retirement, schooling, housing and so on all have corresponding social security. In order to support this heavy social security system, it is necessary to follow the principle of "wool comes from sheep" and let everyone pay social insurance premiums according to their income.

Social contributions are paid by people who receive wages, pensions and other income in a certain proportion. The employer must also pay the employer's relative contribution. We list the main contribution proportion in salary below.

1. Sickness, maternity, disability and death insurance: 2.8% for employers, 6.8% for employees and * * * * 9.6%.

2. Old-age insurance: the employer pays 8.2%, the employee pays 6.55%, * * * 14.75%.

3. Old-age insurance: the part exceeding the upper limit of insurance 1.6%.

4. Installation fee: 5.4% paid by the employer.

5. Widowhood insurance: employees pay 0. 1%.

6. Work-related injury insurance: the employer pays about 2.36%.

7. Housing subsidy: 0. 1% for employers and 0.4% for enterprises with more than 9 employees.

8. Unemployment insurance: employees pay 3.22%, and employers pay 5.34%.

9. Supplementary pension: employees pay 2% to 5%, and employers pay 3% to 10%, depending on industries and positions.

10. CSG: 3.4% (Jospin government plans to increase it from 1997 to 7.5%).

1 1. social debt compensation (RDS): 0.5%.

12. Payment ratio of non-wage earners: 12.85%, determined according to income. Retirees pay 3.4%, plus pension insurance and other contributions.

Although the above-mentioned social welfare contributions are different from the tax system, they are collected by the joint collection agency of social contributions and managed by the national social insurance treasury and pension treasury, but they are increasingly becoming "direct taxes" and become a heavy burden on the French economy together with other taxes. In addition, France's social insurance expenditure is still rising, so the government keeps increasing the proportion of CSG to make up for the deficit, which in turn increases people's burden. At present, France's social insurance expenditure has accounted for about 25% to 30% of GDP, and the burden is very heavy.

Problems and prospects of verbs (abbreviation of verb)

Facing the 2 1 century, the French tax system will undergo a series of reforms. The rapid development of productive forces, the rapid changes of economic and social levels and structures, and the evolution of people's concepts, thoughts and mentality all pose new challenges to the tax system.

(A) the existing problems

1. The heavy tax burden is incompatible with economic development.

In the face of fierce international competition, reducing production costs and improving production efficiency have become the priority goals of enterprises in various countries. As we mentioned above, France's heavy compulsory tax burden system has seriously delayed economic development, making it difficult for enterprises to reduce costs. For example, if a salaried person gets a net salary of 65,438+00,000 euros, the employer will have to pay 65,438+0,800 euros. Coupled with the occupational tax directly related to the number of salaried people and total wages, this burden is even heavier. Therefore, employers would rather replace people with machines than hire people easily. In addition, the labor protection law in France is very strict, which makes it easier to hire people and harder to fire people, and also makes enterprises reluctant to hire more people. This is also the structural factor of the high unemployment rate in France. Therefore, economists agree that although the French economy will rebound with a growth rate of 2% to 3%, it will have little impact on reducing the unemployment rate.

2. Tax equality and "killing the rich and helping the poor"

France adopts a highly progressive income tax system, with the highest tax rate as high as 56.8%, which is higher than other industrialized countries. In contrast, the highest tax rate in Germany is 53%, Sweden is 5 1%, Britain is 40%, and the United States is only 39.6%. As a result, richer people pay more taxes. Plus the super-rich tax, it is also higher than other industrialized countries. As a result, the rich and high-income people try their best to reduce taxes and avoid taxes, and even transfer their wealth abroad and immigrate on their own.

In this regard, the left and the right have different ideas: the left believes that people with more income and money should pay more taxes, which is the basic principle of social mutual assistance. On the other hand, the right wing believes that the main driving force of the economy comes from enterprises and entrepreneurs. Only by reducing the tax burden, making high-income people willing to stay in France and attracting more investors and high-income people to France can we revitalize the economy, reduce the unemployment rate and make France richer. Therefore, the left-wing forces represented by the Socialist Party and the right-wing forces represented by Charles de Gaulle's defense alliance and the French Democratic Union have implemented different reform policies in their respective administrations.

In addition, because France has set a high tax line, only 565,438+0% of the total households pay income tax. In Germany, this proportion accounts for 62.3%, and in the United States it is as high as 94%. In contrast, high-income earners become the main source of income tax.

3. Power of tax department and civil rights

Although the tax department is based on the law, in view of the fact that tax is the source of state funds, the politicians have been strengthening the power of the tax department, which has led to the weakening of civil rights in the tax field. For example, according to the Constitution and European Human Rights Law, any citizen can complain about the reasons before being punished by law, and the judge can make a ruling on the condition that both parties to the dispute are equal. But this is not the case with tax fines. For example, fines are often automatically executed only on the basis of overdue payments, and it is difficult for the punished person to appeal. In this respect, the executive power has replaced the judicial power and can punish taxpayers without authorization. In this regard, the Judges Association raised an objection.

The tax system is too complicated.

Direct tax, indirect tax, income tax, turnover tax and so on. The development of French tax system is very complicated so far. Maintaining this huge tax department itself consumes a lot of national budget. How to reform? This is also a question that both political and judicial circles are thinking about.

(b) Prospects for reform

This is what the government has been doing in recent years. Different ideologies have different ideas about tax adjustment: the right-wing government's reform aims at lowering the highest income tax rate, benefiting high-income earners, and at the same time increasing the tax collection rate, so that more people who are not rich are exempt from paying taxes. In terms of occupational tax, it will further reduce the burden on enterprises and increase value-added tax to supplement tax sources. Its purpose is to stimulate investment and promote economic recovery. On the other hand, the left-wing government refused to lower the top tax rate, but restricted the rights of high-income people in social welfare and increased subsidies for low-income people. In terms of corporate tax, the tax rate will be raised for large enterprises with rich profits, while it will remain unchanged for small and medium-sized enterprises. Its purpose is to pay more attention to social equality and reduce the polarization between the rich and the poor.

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