SOCIAL CONTRIBUTION ON PROFITS (CSB) - TAXES IN FRANCE - FRENCH TAXATION
For accounting periods ending on or after 1 January 2000, persons liable to corporation tax are subject to a contribution equal to 3.3 % of the corporation tax computed on the taxable profits at the rates 33.33 %, 25 % and 19 %. It is based on the amount of corporation tax of the accounting period, less a relief of € 763 000.
Persons liable to corporation tax with a tax-free turnover of less than € 7 630 000 are exempt. To be exempt, companies must have a wholly paid up capital held continuously, for at least 75 %, by individuals or by one company or more with a turnover of less than € 7 630 000 and directly held for at least 75 % by individuals.
The CSB is collected like corporation tax and under the same guarantees and sanctions. It must be paid spontaneously at the latest at the date of the payment of the balance of the corporation tax. There are four instalments to be made at the same time as the four instalments of corporation tax before the payment of the balance.
The CSB is not a deductible expense for determining the corporation tax basis. It feeds the financing of the employers’ social security contributions. In 2003, the revenue from CSB amounted to € 711 million. In 2004 it is expected to reach € 740 million.