Taxes in Europe Database v2
Articles 1447 to 1479 and 1647 bis to 1647-E of the General Tax Code (Code général des impôts).
The revenues from the business tax were shared by State, regions, departments, administrative areas, and their public institutions for cooperation between local authorities.
The business tax was levied on any person (private or legal) who usually exercises an unsalaried professional activity.
The business tax was levied on:
-The sum of the rental value of the tangible fixed assets used for the business or 6% of the receipts for holders of professional profits employing less than five people;
-This base is reduced for craftsmen employing less than three people, agricultural cooperatives and unions of cooperatives, businesses whose works, at least for a part of his activity, for foreign businesses or businesses registered with the national chamber of inland waterways transport;
-The rental value of certain exceptional facilities (airports, nuclear power stations, antipollution facilities) is subject to a one-third abatement; an abatement of 50% is applied to the rental value of certain antipollution facilities, and local authorities have the power to reduce this abatement to 100%;
-Finally, the general net base was permanently reduced by a 16% abatement;
-There was a minimum tax: The amount was a theoretical assessment of the tax on furnished accommodation to main establishment. This amount could not be inferior to 1.5% of the value added produced during the fiscal year (if turnover is over € 7,600,000). This minimum tax was levied by the state.
- Non-profit activities exercised by the state, local authorities, public institutions, low-rent housing organisations and certain private bodies;
- Farmers, craftspeople working alone or with their family;
- Newspaper firms, owners of mining concessions, pedlars, workers cooperative productive societies;
- Private educational establishments;
- Artists and sportmen;
- Mutualist concerns;
- Two-year exemption by decision of the beneficiary local authorities in favour of new businesses, doctors and medical auxiliaries;
- Temporary exemptions in certain spatial planning zones for businesses which create, extend or decentralise industrial research activities or management, design engineering or information technology services;
- Exemptions specific to businesses situated in large complexes and in degraded districts, urban rehabilitation areas urban free zones , competitivity area and for innovating start up.
Set directly by the beneficiary regional and local authorities subject to the regional and local ceiling rate.
There was a ceiling on each business's contribution of 3.5% of the value added produced during the fiscal year.
Super reduced rate
The assessment of the business tax was due 15th June. It was preceded by one down-payment 1st April.
Public Finances General Directorate (Direction Générale des Finances Publiques).
Since this General Directorate belongs to the central authority, 8% of the business tax revenues were taken as fee by the central authority.
The so-called Taxe professionnelle has been replaced by another business tax, the so-called Contribution économique territoriale from January 1st 2010.