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France: Tax-Efficient Sectors


This page was last updated on 6 Nov 2018.

The French government has taken steps to encourage investment in SMEs over recent years. A law (TEPA) was passed August 2007, focusing on purchasing power, labour and employment in SMEs. It allowed overtime payments to be exempted from income tax and social security contributions up to a maximum of 21.5% of pay.

In addition, TEPA provides for a reduction in wealth tax of up to 75% up to a maximum of €50,000 investment for a taxpayer investing in a non-public SME. Small and medium businesses investing in research and development are eligible for tax credits of up to 30% of their total R&D costs. In addition, SMEs are exempt from the 3% surcharge that is levied on dividend distributions.



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