Presentation of France

France is a sovereign transcontinental state whose metropolitan territory is located in Western Europe. It shares land borders with Belgium, Luxembourg, Germany, Switzerland, Italy, Spain, and the principalities of Andorra and Monaco. France also benefits from extensive coastlines along the Atlantic Ocean, the English Channel, the North Sea, and the Mediterranean Sea.

The French economy is a social market economy based on private property, with historically strong state intervention since the end of World War II. Although this intervention has been reduced since the 1980s, it remains significant. Today, France’s economy is mainly service-oriented, with services accounting for nearly 75% of GDP.

Good to know: Corporate Income Tax (CIT)
• Standard corporate tax rate: 25% (since 2022, a unified rate applies to all companies).
• Reduced rate of 15%: applicable, under certain conditions, on the portion of profits up to €42,500.

Conditions to benefit from the reduced rate:
• Annual turnover (excluding VAT) of less than €10 million;
• Fully paid-up share capital;
• At least 75% of the capital continuously held by individuals (or by a company meeting this same requirement).

Above €42,500 of taxable profits, the balance is taxed at the standard rate of 25%.