France has one of the most complex and multi-level taxation systems in place, covering both legal entities and individual entrepreneurs. Let us consider the main taxes applicable to these categories of taxpayers.
Taxes for legal entities
1) Corporate income tax (Impôt sur les Sociétés, IS):
Its standard rate is 25% on company profits. A reduced rate of 15% is possible and applies to the first 38,120 euros of profit for small and medium-sized enterprises with an annual turnover of less than 7.63 million euros.
Some companies can choose between being taxed under the income tax system (Impôt sur le Revenu, IR) or the corporate tax system (IS), depending on their legal form and capital structure.
2) Value added tax (Taxe sur la Valeur Ajoutée, TVA), its rates are also diversified. The standard rate is 20%, and the reduced rates are: 10%, 5.5% and 2.1% are applied to certain goods and services.
3) There is also a tax called the territorial economic contribution (Contribution Économique Territoriale, CET). It consists of two components – a tax on the value of commercial real estate (Cotisation Foncière des Entreprises, CFE) and a contribution to the value added of business (Cotisation sur la Valeur Ajoutée des Entreprises, CVAE). The rates depend on the location and turnover of the company; the maximum CVAE rate is 1.5% for companies with a turnover of more than EUR 50 million.
4) There is also a so-called vehicle tax (Taxe sur les Véhicules de Sociétés, TVS). It is levied on companies that use cars for commercial or business purposes. The rates depend on the type of vehicle, its age, and CO₂ emissions.
Taxes for individual entrepreneurs (IEs) are also quite complicated.
1) Income tax (Impôt sur le Revenu, IR) with a progressive scale from 0% to 45%, depending on annual income. The income of individual entrepreneurs is taxed on the same scale as the income of individuals. There are various taxation regimes for individual entrepreneurs, such as “micro-entrepreneur” with a simplified accounting and taxation system.
2) Social contributions – individual entrepreneurs are required to pay social and health insurance contributions, the amount of which depends on the type of activity and income level.
3) Value added tax (TVA). Individual entrepreneurs are required to register as VAT payers if their annual turnover exceeds certain thresholds, for example, for trade in goods it is 91,900 euros, and for the provision of services – 36,800 euros.
Like almost any other country in the world, there is a real estate tax (Taxe Foncière). It is levied on property owners, regardless of their residency status. The rates are determined by local authorities and depend on the cadastral value of the property.
There is also still a tax on residence (Taxe d’Habitation), which is levied on persons living in real estate as of January 1 of the reporting year. This tax is being gradually abolished for most households; the full transition is expected to be completed in the coming years.
The luxury tax or Impôt sur la Fortune Immobilière (IFI) is levied on individuals whose real estate in France is valued at more than EUR 1.3 million. There is a progressive scale from 0.5% to 1.5% of the property value.
The French tax system is characterized by a high degree of progressivity and diversity of taxes, which requires careful planning and accounting when doing business. It is recommended to consult with professional tax advisors to ensure compliance with current legal requirements and optimize the tax burden.
http://relocation.com.ua/osoblyvosti-podatkovoi-systemy-frantsii-na-kinets-2024-roku-styslyj-analiz/
The taxation system in the Netherlands is quite diverse. Let’s take a brief look at some of its features.
Taxes for legal entities are as follows.
1) Corporate income tax (CIT):
The rate ranges from 19% on profits up to EUR 200,000, to 25.8% on profits over EUR 200,000.
There are a number of peculiarities here, for example, resident companies are taxed on global income, while non-residents are taxed only on income from sources in the Netherlands. Under certain conditions, dividends and capital gains may be exempted from taxation under the substantial participation exemption.
2) Value added tax (VAT) ranges from the standard rate of 21% to a reduced rate of 9% (applicable to certain goods and services) and even to a zero rate of 0% (for exports and some specific cases). It is worth noting that businessmen are required to register as VAT payers and submit declarations on a quarterly basis.
3) Dividend tax, with a rate of 15%, is withheld when paying dividends to shareholders. The rate may be reduced or eliminated under international double taxation treaties.
4) Capital gains tax – gains from the sale of capital assets are usually included in the taxable base and taxed at standard corporate tax rates.
5) Social security contributions for employees should not be forgotten. Employers are obliged to withhold and remit social security and healthcare contributions for all their employees.
In the Netherlands, the taxation system allows you to register as a private entrepreneur. In this case, the businessman will have income tax obligations, the rate of which is 9.32% for income up to 38,098 euros (including the national insurance contribution of 27.65%, the total rate is 36.97%), 36.97% for income from 38,098 to 75,518 euros, and income over 75,518 euros per year is taxed at a rate of 49.50%.
Individual entrepreneurs are also required to pay social security and healthcare contributions, the amount of which depends on their income. Sole proprietorships are required to register as VAT payers and file quarterly tax returns, similar to legal entities.
There is also a real estate tax, with property owners paying an annual tax, the amount of which depends on the cadastral value and is set by local authorities.
The inheritance and gift tax applies to recipients of inheritance or gift, with rates depending on the degree of kinship and the value of the property received.
In general, the Dutch tax system is characterized by progressive rates and a variety of taxes, which requires a careful approach to tax planning. It is recommended to consult with professional tax advisors on a regular basis to ensure compliance with the current legal requirements.
http://relocation.com.ua/osoblyvosti-podatkovoi-systemy-niderlandiv-korotkyj-analiz/
The total ratio of taxes and social contributions to GDP in the European Union in 2023 was 40%, down from 40.7% in the previous year, according to the EU Statistical Office.
In the euro area, this figure also decreased to 40.6% last year, compared to 41.4% in 2022.
In absolute terms, in 2023, revenues from taxes and social contributions in the EU increased by €308 billion to €6.883 trillion.
The tax-to-GDP ratio varies significantly by country, with the highest shares recorded in France (45.6%), Belgium (44.8%), and Denmark (44.1%). The lowest rates are in Ireland (22.7%), Romania (27.0%), and Malta (27.1%).
Last year, 11 EU countries saw an increase in the indicator, with the most significant growth in Cyprus (to 38.8% from 35.9% in 2022) and Luxembourg (to 42.8% from 40.2%). In 12 countries, a decrease was recorded, the most significant in Greece (to 40.7% from 42.8%) and France (to 45.6% from 47.6%).
http://relocation.com.ua/podatky-stanovyly-40-vvp-v-ievropejskomu-soiuzi-v-2023-rotsi/
The price of Bitcoin (BTC) remained unchanged due to the event and surpassed the $68,000 mark for the first time since late July.
Italian Deputy Finance Minister Maurizio LEO said the government will raise taxes on capital gains in cryptocurrencies such as Bitcoin from 26% to 42%, Reuters and Bloomberg reported.
According to Bloomberg, the Italian cabinet made the decision because “this phenomenon is spreading,” the LEO said of Bitcoin during a conference call on Wednesday.
The move comes in the wake of Italy’s decision to strengthen its tax on digital services as part of plans to boost revenue in its 2025 budget.
The price of Bitcoin (BTC) was unchanged, posting a weekly gain of more than 12%, surpassing the $68,000 mark for the first time since late July.
In January-June 2024, Varus supermarket chain paid UAH 700 million in taxes and fees to the state budget, the retailer’s press service reports.
“Every hryvnia of taxes paid to the state budget is another brick in building a strong economy of Ukraine. We are grateful to all the customers of Varus supermarkets, thanks to whom we continue to work and contribute to the support of our country,” comments Marina Panina, CFO of Varus.
In the first three quarters of 2024, Varus opened new stores in Pokrov, Zaporizhzhia, two in Odesa and renovated the store in Kryvyi Rih.
The release notes that the expansion of the network and the opening of new stores allows Varus to create and provide jobs for Ukrainians in different regions. The company pays special attention to internally displaced persons. First of all, the company helped evacuate and provided new jobs to its employees from the regions where active hostilities are ongoing. The IDPs are employed in all cities where the chain has stores. In the city of Dnipro alone, more than 500 IDPs have been employed in the chain’s stores.
In 2023, Varus paid UAH 1.1 billion in taxes and fees to the state budget.
In January-August 2024, Naftogaz Group paid UAH 56.5 billion in taxes to the state budget of Ukraine and another UAH 4.3 billion to local budgets, the company reported on its website on Monday.
According to the company, this is more than 7% of all payments controlled by the State Tax Service of Ukraine.
In particular, in August, UAH 7.2 billion was paid to the state budget and UAH 0.6 billion to local budgets.
“The economic stability of the state during the war is a matter of national security. The Naftogaz Group remains a reliable pillar of the Ukrainian economy in wartime,” said Oleksiy Chernyshov, Chairman of the Board of Naftogaz of Ukraine.
As reported, in 2023, Naftogaz Group companies paid UAH 90.2 billion in taxes, UAH 83.4 billion of which went to the state budget and UAH 6.8 billion to local budgets.
