The concept of old tax established in France: Professional Tax

Résumé du document

Business tax (TP) is one of four local direct taxes levied by local authorities. It is due every year by natural or legal persons performing in France, as usual, a self-employed activity. Various exemptions may be full or temporary. She used to finance the budget of municipalities, EPCI (communities of municipalities, cities or urban), departments and regions, as well as other organizations, such as chambers of commerce and industry or professional chambers. In 2007, TP raised just over 22 billion Euros. It is an essential part of the resources of local authorities (30 to 50% depending on the community). Tax due in each municipality where the taxpayer has premises or land.

TP is based on the rental value of tangible assets. It may be of Assets subject to property tax (built or inbuilt) as premises or land, but also of other property (equipment, chattels ...). Since 1 January 2003, the payroll is excluded from the calculation of the base of the business tax: the former calculation submitting 18% of wages paid to the business tax was job-killing effect.

This tax base is subject to a general reduction of 16 % and any special discounts. This base is multiplied by the sum of the rates set by the different communities. The rate varies greatly depending on the location of the company. However, if the turnover exceeds € 7,600,000, a minimum fee is due (1.5 % of the added value produced).

Extraits

[...] - Exercisable in France. The tax is payable by the person exercising the profession in an establishment in France , that is to say, the operator for sole proprietorships or partnership if the activity is conducted as companies. Parliament has provided numerous exemptions to the principle of submission to the business tax. While some apply as of right, others are subject to the vote of the local authority concerned. Exemptions to right : - Any business the calendar year of its creation; - Sole proprietorship created since January (or the person who declares as a self - contractor ) and has opted for the payment of income tax is exempt from business tax for a period two years from the year following the year of its creation. [...]

[...] Subject to the vote of the local authority concerned Exemptions - New businesses can benefit in some cases, for institutions created or taken to a firm in difficulty, a business tax exemption between two and five years. The exemption applies to the year following the creation of business; - Young Innovative Companies established December are eligible for an exemption for a period of seven years; - Competitiveness clusters: the exemption applies for five years to businesses located in an area of ​​research and development within a cluster may be exempted from business tax for a period of five years - Newly created companies or extensions establishments that locate in an urban zone (UFZ) until 31 December 2011 are eligible for an exemption from business tax for a period of five years; - Newly created companies or extensions establishments that locate in a labor pool to revitalize (BER) until 31 December 2011 are eligible for an exemption from business tax for a period of five years; - Establishments with the independent label reference library. [...]

[...] This tax base is subject to a general reduction of and any special discounts. This base is multiplied by the sum of the rates set by the different communities. The rate varies greatly depending on the location of the company. However, if the turnover exceeds 7,600,000, a minimum fee is due ( of the added value produced). b. Origin: Founded in 1975 under the government of Valery Giscard to succeed taxation revolutionary origin anachronistic, business tax has not completely freed from this pedigree. [...]

[...] At the end of the revolutionary period, it included the one hand, a fixed duty characteristic of a grade- tax, and secondly, a variable duty. The first was set by reference to a rate established by the nature of the activity and, more often than the population of the municipality. The second, more representative of the ability of taxpayers, was determined based on the rental value of imposed institutions and their equipment. State tax , trade tax was from the beginning subject to surcharges levied initially in favor of communes and departments , then , from consular agencies. [...]

[...] The Concept of old tax established in France: Professional Tax Definition of professional tax: Business tax is one of four local direct taxes levied by local authorities. It is due every year by natural or legal persons performing in France, as usual, a self-employed activity. Various exemptions may be full or temporary. She used to finance the budget of municipalities, EPCI (communities of municipalities, cities or urban), departments and regions, as well as other organizations, such as chambers of commerce and industry or professional chambers. [...]