CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Local Corporate Tax Burden Varies In France, Study Shows

Local Corporate Tax Burden Varies In France, Study Shows

by Ulrika Lomas, Tax-News.com, Brussels

29 November 2013


Although 2013 marks a clear "lull" in the local tax onslaught, there are still significant disparities as regards the actual local tax burden borne by enterprises in France, depending on geographical location.

In its annual assessment of the cost of local taxes to businesses, the Alma Consulting Group observed that both the local tax burden and the level of rent paid out by corporations remain high and vary dramatically from town to town. In general, the local tax burden represents between 10 and 30 percent of the rental cost for "premium" offices (either new or refurbished), and between 20 and 40 percent of rent prices for "second hand" offices, the group explained.

Towns in France with the highest land tax per square meter of office space include Créteil (EUR45/m2) (USD61.2/m2), Saint-Denis (EUR45/m2), Montreuil (EUR41/m2), and Nîmes (EUR33/m2). In contrast, towns with the lowest recorded level of land tax per square meter include Metz (EUR11/m2), Brest (EUR12/m2), and Tourcoing (EUR11/m2), despite the fact that Tourcoing has one of the highest land tax rates applied, at 66.3 percent.

Even though local taxes remained relatively stable for companies in France this year, with an average rise of just 2 percent observed compared to 2012, due to the upcoming municipal elections, local taxes are expected to soar again following the elections. The increase is forecast to be considerable, given that given that France's 2014 finance bill provides for a EUR1.5bn reduction in local authority funding, and in view of plans to revise office rental values from 2015.

The Alma Consulting Group's so-called "barometer" assesses the real tax cost of business offices by determining the annual cost of local taxation (land tax, waste disposal tax, corporate land tax (CFE), and office tax), and comparing this total with average rents in Paris and the 45 main towns in France.

TAGS: tax | business | mining | corporation tax | tax rates | France

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »