Abstract
Business tax (TP) is one of four local direct taxes levied by local authorities. It is due every year by natural or legal persons performing in France, as usual, a self-employed activity. Various exemptions may be full or temporary. She used to finance the budget of municipalities, EPCI (communities of municipalities, cities or urban), departments and regions, as well as other organizations, such as chambers of commerce and industry or professional chambers. In 2007, TP raised just over 22 billion Euros. It is an essential part of the resources of local authorities (30 to 50% depending on the community). Tax due in each municipality where the taxpayer has premises or land.
TP is based on the rental value of tangible assets. It may be of Assets subject to property tax (built or inbuilt) as premises or land, but also of other property (equipment, chattels ...). Since 1 January 2003, the payroll is excluded from the calculation of the base of the business tax: the former calculation submitting 18% of wages paid to the business tax was job-killing effect.
This tax base is subject to a general reduction of 16 % and any special discounts. This base is multiplied by the sum of the rates set by the different communities. The rate varies greatly depending on the location of the company. However, if the turnover exceeds € 7,600,000, a minimum fee is due (1.5 % of the added value produced).
