List of taxes included in corporate taxation

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Value-added tax is at the heart of French and European tax strategy. It allows the government to collect an indirect tax on consumption, throughout the production and distribution chain of a product or service. It can be used as a tool to balance state budgets, finance public services, and above all to regulate consumption. It is collected at each stage of a product's life by companies, which then pay it to the state using various mechanisms , giving it great flexibility of use.


French companies are subject to several taxes, which makes corporate taxation complex. First of all, they are liable for corporate tax , levied on their profits, but ghana phone data also for the business property tax and the business value added tax, which constitute the territorial economic contribution. Various social contributions must also be taken into account, such as payroll tax, employer contributions, and finally, VAT . While this tax landscape may seem difficult to approach, it is studied in depth in MBA business law and in specialized courses in business law.

VAT
VAT, as its name suggests, is levied on the added value of a product or service. To simplify, a product sold for 200 euros, which cost 100 euros to produce, therefore has an added value of 100 euros. It is on this added value that VAT is applied. This tax has the particularity of being collected directly by the companies that participate in the manufacture and distribution of a product. This is why it appears on every receipt or invoice of consumers on a daily basis, on almost all products and services purchased. Consumers therefore pay the tax at the time of purchase, and the store (or service provider) will pay this amount to the tax authorities during the next tax period. In France, VAT can be 20% for the majority of goods and services, or 10% for products and services related to catering , transport, basic food products, books, etc. It can drop to 2.1% for reimbursable medicines sold in pharmacies. The reduction in tax can act as a lever to facilitate access to certain products for people on low incomes.

Tax regimes
Taxes are not the only thing to consider in corporate taxation . In fact, they often depend on the tax regime to which the company is subject. There are several depending on the size of the company, its turnover, and even its legal form.

Micro-Enterprise Regime
This is a tax regime created to facilitate and encourage the creation of small businesses, including sole traders and self-employed entrepreneurs. In this type of taxation, VAT is not applicable , but the company is limited to a turnover of 77,700 euros for the provision of services, and 188,700 euros for the sale of goods and commercial activities. This is the simplest regime, which in the majority of cases does not require its own accounting . It is generally managed online, directly on the URSSAF website.

Simplified Real Regime
This tax regime concerns larger companies, which generate a turnover of between 188,700 and 789,000 euros per year (for the sale of goods and commercial activities) or between 77,700 and 247,000 euros for the provision of services. The levy is made directly on the actual turnover (hence the name of the regime). Its management, being more complex, is accompanied by accounting obligations , but remains simplified to support companies which, as they grow, leave the micro-enterprise regime.

Real Normal Regime
When a company generates a real turnover exceeding the thresholds mentioned above, it can no longer benefit from the simplified regimes. Subject to the normal real regime, a company is required to keep complete and precise accounts, and must therefore use an accountant. The basis for taxation, however, remains the company's real turnover. This regime can be chosen voluntarily even with a lower turnover, for reasons of transparency and rigor .

Controlled Declaration Scheme (for liberal professions)
This tax regime is in force for liberal professions and companies whose turnover is based on non-commercial profits. Non-commercial profits are understood to mean the income of liberal professions such as doctors, nurses, but also lawyers and consultants. The income of artists, writers, or services such as coaching or consulting, which are booming these days, also fall into this category of income. This regime allows certain professional expenses to be deducted from turnover before considering it as the taxable base . The accounting obligations are, however, the same as for a real regime.