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9. Taxation of Business Profits in France
9.1. Main OptionsBroadly speaking, the basis on which you will be taxed will depend on the legal structure of the business and your level of turnover. Depending on these two criteria a business may be taxed either under the personal income tax system Impôts sur le Revenu, or that of company tax Impôts sur les Societiés. If you are a self-employed person (EI) you are automatically taxed under the personal income tax system. You have the choice of being taxed either as a micro-entreprise, or through the rules of regime réel.
Top Tip!
If you are setting up in an urban or rural development area, then there are quite generous tax breaks available for a new business, which you should discuss with your accountant. These development areas are widespread across France.
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