The French tax system is very complete and complete, and is a typical tax system in Western countries.

1. Principles of the tax system

The establishment, operation and reform of the French tax system are based on a series of principles. They are briefly described as follows:

(1) Legal principles

First of all, the French Constitution stipulates the status of the tax system. Article 34 of the Fifth Constitution of the Republic of China stipulates: Taxation rules, methods, tax rates, etc. shall be determined by law. Article 34 of the Constitution also stipulates that the tax system shall be established not only in accordance with national interests, but also in accordance with local interests.

Secondly, the entire French tax system is stipulated and standardized by the General Tax Law (CODE GENERAL DES IMPOTS). All tax collection, distribution, penalties, inspections, etc. are subject to the General Tax Law. The implementation details of various government decrees are also formulated in accordance with the General Tax Law and the nature of the tax system stipulated in the Constitution, and are supervised by the Administrative Court.

Third, the tax scope, tax rate, establishment of new tax categories, cancellation of tax categories, etc. must be passed through parliament in the form of bills to take effect.

Fourth, all tax disputes must be resolved through judicial channels and in accordance with the law.

(2) Public principle

The tax system is a system represented by the state that imposes taxes on various national incomes and economic behaviors. Therefore, only representatives of the state can impose taxes. The entire tax collection department is a state agency, and its staff are state civil servants. The central government implements unified leadership over the tax department.

(3) Principle of equality

Everyone is equal before the law. This principle is reflected in taxation, that is, when there is a tax dispute between an individual and the state, or between an individual and the tax agency, both parties shall resolve it through the law on an equal footing.

There is also the principle of equality in tax collection, which means that if tax regulations target a certain type of income, everyone with that income will pay the same tax, without exception. For established tax standards or regulations, the corresponding taxpayers are equal. It does not happen that some people are held to one standard and others to another standard.

(4) The principle that the rich pay more and the poor pay less

This is a basic principle of French tax rate policy. For example, income tax implements a high progressive tax system. The higher the income, the higher the tax rate, and vice versa.

The above are the four basic principles of the French tax system.

2. Overview of tax types

In terms of broad categories, French taxes can be classified into four broad categories, namely income tax, consumption tax, capital tax and local tax.

(1) Income tax (IMPOTS SUR LE REVENU)

The concept of income tax refers to the assessment of income generated from various occupations and economic activities such as work, investment, and business. tax. However, the concept of this type of tax is not precisely defined in the relevant tax law, which seems to leave sufficient possibility for changes in the formulation of future tax policies.

Specifically, the concept of "income" is not only in the form of money. Various non-monetary incomes such as physical objects can also be classified as "income income". In addition, expenses, prices, burdens, etc. paid to obtain this income can generally be deducted from the income accordingly, and the remaining portion is regarded as net income and is counted as "taxable income" (REVENU IMPOSABLE). Income tax is divided into two parts: levied on legal persons and levied on natural persons.

1. Corporate tax (IS: IMPOT SUR LA SOCIETE)

This is an income tax levied on legal persons. All joint stock companies and limited liability companies that carry out business activities in France, regardless of the type of their business activities, whether they are domestic companies or foreign companies, are required to levy this tax. Some types of personnel combination companies, such as collective companies, civil companies, etc., are not required to pay this kind of corporate tax in principle.

But the personnel of these companies can choose whether to include income in personal income tax or pay corporate tax. Once the decision is made, it cannot be changed. In addition, cooperatives, associations and the public sector are also required to pay corporate tax if their activities are of a profit-making nature. Some mutual aid organizations and associations can enjoy tax exemption if their operations are not pursuing high profits.

Corporate tax is a tax on a company’s net profits. This net profit is shown on the balance sheet (BILAN) based on the accounting of the company's annual operating results. In tax laws and accounting laws, there are clear provisions on the calculation of net profit, depreciation, costs, expenses, inventory, etc., so there is no possibility of confusion in the definition of net profit.

The current tax rate on the company’s net profits is 36.6%. As for enterprises that have no profits or are losing money, they only need to pay the prescribed basic tax categories.

In addition, the tax department also implements different tax rates or tax exemptions based on the specific circumstances of the enterprise:

1) If it is a new company, the company tax is exempted for the first two years. Pay 5% in the third year, 50% in the fourth year, 75% in the fifth year, and only pay the full amount in the sixth year.

2) The long-term appreciation of the company’s assets will only be taxed at the corporate tax rate of 18%.

3) If a non-profit local collective civil company operates real estate or movable property, it pays tax at a low tax rate of 10% to 20%.

4) The left-wing government stipulates that profits reinvested by small and medium-sized enterprises will only be taxed at a rate of 20.9% if the amount is less than 200,000 francs.

2. Personal income tax (IR: IMPOT SUR LE REVENU PERSONNEL)

This is a tax levied on natural persons, that is, individuals.

Personal income tax is a tax levied on all individuals with income. The principle is to adopt a highly progressive system based on different incomes: that is, different tax brackets are divided according to the amount of people's income. At the same time, family, career and other expenses are deducted based on each person's different circumstances to calculate the tax parameters for families with or without children.

The following three categories of people are required to pay personal income tax:

1) Anyone whose family and main place of residence is in France, that is, those who have lived in France for 6 consecutive months (i.e. 183 days)

2) Anyone who carries out their main professional activities in France;

3) Anyone who has major economic interests in France.

Therefore, anyone who meets one of the above three conditions, regardless of whether his or her nationality is French, must declare tax on all of his or her income (whether in France or abroad).

Any person who does not fall into the above three categories, that is, is not permanently resident in France, must pay tax on his or her income earned in France.

According to the new tax law from 1998, the tax rate is:

(1) Anyone whose annual income is less than 25,890 francs does not need to pay tax.

(2) Those whose annual income is between 25,890 francs and 50,930 francs are taxed at a tax rate of 10.5%.

(3) Those whose annual income is between 50,930 francs and 89,650 francs are taxed at a tax rate of 24%.

(4) Those whose annual income is between 89,650 francs and 145,160 francs are taxed at a tax rate of 33%.

(5) Those whose annual income is between 145,160 francs and 236,190 francs are taxed at a tax rate of 43%.

(6) Those whose annual income is between 236,190 francs and 291,270 francs are taxed at a tax rate of 48%.

(7) Those whose annual income exceeds 291,270 francs are taxed at a tax rate of 54%.

The above standards are the tax standards for single persons. French personal income tax is levied on a family basis. If there are two people in a taxpayer household, the two people should fill in the tax return together and calculate the total income divided by two. The standard is the same as above. If there are children who need to bear the burden, the total income of the two persons should be calculated by subtracting the child's share (one child counts as half a share).

Therefore the above standard is only a reference standard.

There are also many items that can enjoy tax reductions: for example, 10% and then 20% are generally deducted from salary income as work expenses to enjoy tax reductions, the interest on house purchase loans can be tax deducted, and the interest on consumer loans can be deducted within a certain period. Tax reductions are available for renovations and improvements to facilities in old homes, as well as for raising elderly people, donating to charities, investing in life insurance, investing in rental properties, etc. Therefore, in fact, the declared taxable income is taxed at the above tax rate after enjoying various exemptions.

In 2002, the right-wing government came back to power. In order to fulfill its campaign promise, personal income tax will be reduced by 5% this year. During the term of this government, the tax will be reduced by 30%.

What we have introduced above is the status of income tax. Whether it is corporate income tax or personal income tax, they are based on direct taxation of income, so they are direct taxes.

(2) Consumption tax (IMPOTS SUR LA DEPENSE)

Consumption tax is a tax that people pay to the state when they consume. This tax is included in the price of goods and paid by merchants to the state, so it is an indirect tax.

Consumption taxes are divided into the following three categories:

1. Value-added tax (TVA)

This is the most important consumption tax in France and the largest proportion of national fiscal revenue. tax.

Value-added tax refers to a tax levied at a specific proportion on various commercial transactions in the field of commercial circulation. Such business transactions can be physical (such as commodity transactions) or non-physical (such as various services).

There are two VAT rates:

1) Basic food, books, country hotels, dramas, concerts, medicines, etc., the tax rate is 5.5%.

2) For other goods and services, the tax rate is 19.6%.

2. Alcohol, beverages, tobacco and alcohol taxes

This type of tax is levied at different rates based on different items and different sales methods. For example, the tobacco tax rate is as high as 75.99%, and it continues to increase. In addition to the 20.6% value-added tax, alcoholic beverages also have to pay an additional tax of 15% to 20%. In addition, those who sell alcoholic beverages must exchange taxes, which vary in amount.

3. Fuel tax

France is the country with the heaviest tax on fuel in Europe, with a tax burden rate of over 80%. Although French gasoline has the lowest price in Europe excluding taxes, its sales price is very high because of the heaviest taxes.

(3) Capital tax (IMPOTS SUR LE CAPITAL)

Capital tax includes various taxes related to capital and family property, such as real estate transfer tax, property inheritance tax, and wealth tax wait.

1. Registration and registration tax (LES DROITS D'ENREGISTREMENT)

All official registration and registration activities must be paid to the government: such as car registration, stamp duty, company establishment Various standards are announced by the tax bureau for registration, conclusion of marriage contract, registration of pre-sale or pre-purchase contract, issuance of residence permit, application for patent, loan contract, etc. All civil and criminal contract activities are generally required to pay registration tax to the government. The tax rates vary, and various standards are announced by the tax bureau.

2. Property transfer tax (LES DROITS DE MUTATION)

Property transfer tax refers to the tax levied by the state on the transfer of movable and real estate transactions, sales, gifts, inheritance, etc. Their tax rates vary widely. For example, the transfer tax on the sale of an old house is about 9%, and the tax on inheritance ranges from 5% to 60%. These acts must be notarized by a notary. In addition to the above-mentioned transfer tax, the value-added tax on the notarization service fee of the notary must be added.

3. Property Appreciation Tax (TAXATION SUR DES PLUS-VALUES)

All movable assets (such as bonds, stocks) and real estate (such as real estate) are also subject to tax. This is different from income tax: dividends from bonds and stocks, for example, should be taxed as income, but their appreciation is subject to this tax. The current movable property appreciation tax rate is around 15%.

As for the real estate appreciation tax rate, if the short-term appreciation is realized within two years, the appreciation will be included in the total income and calculated as income tax; if the long-term appreciation is realized for more than two years, 5% of the annual appreciation (tax reduction discount and currency appreciation factor) will be deducted ) and then conduct "parameter calculation" taxation based on the total income. Regardless of whether it is movable or immovable property, tax is paid after the appreciation is realized: that is, tax is paid after the purchase and sale are completed and the party concerned obtains the appreciation.

4. IMPOTS SUR LES GRANDES FORTUNES (IGF: IMPOTS SUR LES GRANDES FORTUNES)

This is a tax levied on those with a certain amount of wealth, also called a solidarity tax. This tax was established in 1982.

The extremely wealthy tax stipulates that when the total amount of movable and immovable property owned by an individual exceeds a certain limit, the extremely wealthy tax must be paid. The current limit is set at 4.61 million francs, and the tax rate ranges from 0.55% to 1.65%. Taxation is progressive, that is, the more wealth there is, the more taxes will be levied.

(4) Local taxes (IMPOTS LOCAUX)

In France, the tax burden paid to the central government is far heavier than the tax burden paid to local governments. Local tax revenue only accounts for about 20% of total tax revenue. The beneficiaries of local taxes are local governments at the regional, provincial, and municipal levels. Local taxes are divided into the following types:

1. Construction property tax (TAXE FONCIERE DES PROPRIETES BATIES)

This is an annual tax levied on those who own real estate, factories and ancillary properties. . The tax rate is calculated based on the rental value, and standards vary from place to place.

2. Non-construction real estate tax (TAXE FONCIERE DES PROPRIETES NON BATIES)

This is an annual tax levied on those who own non-construction real estate, and the tax rate varies from place to place.

3. TAXE D'HABITATION

This is an annual tax levied on residents, and both landlords and tenants must pay it. The tax rate is calculated based on the rental value, the resident's living area, income, etc., and varies greatly from place to place.

4. Professional tax (TAXE PROFESSIONELLE)

Professional tax is a local tax levied on all legal persons or natural persons engaged in non-wage professional activities. Businesses are the main source of providing this tax. The tax rate is also calculated based on the rental value in each location combined with various industry parameters and other factors, and is paid once a year.

5. Road sweeping tax and garbage removal tax (TAXE DE BALAYAGE)

These two taxes are also taxes levied on an annual basis and are paid by homeowners or tenants.

(5) Proportion of tax types

In the overall taxation in France, the proportions of various tax types are very different, which reflects a series of basic characteristics of the French tax system.

1. Corporate tax (IS), which accounts for 9% to 12% of total tax revenue. The proportion of corporate tax is closely related to the economic situation. If the economy is good, the proportion of corporate tax will be larger, and vice versa.

2. Personal income tax (IR), generally around 16% to 21%. When the country's economy improves and tax revenue sources are sufficient, the government tends to reduce personal income tax, which causes the ratio of this tax to total tax revenue to decline. If the economy is not good and the tax amount drops, individuals will have to pay more taxes.

3. Value-added tax (TVA) is the tax that accounts for the largest proportion of national tax revenue. Therefore, the country attaches great importance to this tax and spares no effort to recover it from enterprises. Its proportion of total tax revenue accounts for about 30% to 45%.

4. Domestic tax on petroleum products, tobacco and alcohol tax, etc. The proportion of this tax is generally 5% to 10%.

5. Local taxes account for about 10% to 15% of the total tax revenue.

6. Transfer taxes and transaction taxes on various property transfers and financial transactions account for about 6% to 10% of the total tax revenue.

It can be seen from the above ratio that France has little pressure to tax personal income, but various indirect taxes such as value-added tax, petroleum product tax, tobacco and alcohol tax, various property transfer taxes, financial transaction taxes, etc. , the tax burden will be heavy. This is a major feature of the French tax system.

3. The organizational structure and scope of power of the tax department

The French tax agency is a department directly managed and controlled by the central government, with a strict organizational structure from top to bottom.

(1) Financial Department

The French tax agency is subordinate to the national financial and budget management system. The top decision-maker in this system is the Ministry of Economy, Finance and Industry. The Ministry is responsible for the formulation and implementation of national economic policies and economic plans. In terms of financial budget, the Budget Department of the Ministry is responsible for formulating the national budget and proposing the annual budget proposal (finance bill). The department also oversees the implementation of the budget to ensure that various expenditures comply with the items and amounts allocated in the budget. The Department's Financial Auditor is assigned to each major administrative department as a national representative to conduct pre-inspections and audits before expenditures are made, and to jointly manage the financial activities of various ministries in conjunction with the relevant ministers.

The French tax agency implements tax laws, calculates tax rates, collects taxes, and conducts tax inspections based on the budget and ministerial orders. Directly linked to the tax agency is the French Corporate Accounting Department, which is responsible for tax collection, budget revenue and expenditure, etc.

(2) Tax agencies

The French Directorate General of Taxation (DGI) is affiliated to the Ministry of Economy, Finance and Industry, and cooperates with the Budget Department, the Corporate Accounting Department, the Treasury Department, and the General Directorate of Foreign Economic Relations. Division level. The bureau is responsible for tax rate calculation, formulation of tax standards, tax collection, and tax inspections. However, customs duties are the responsibility of the National Administration of Customs and Indirect Taxes. In addition, corporate tax and indirect tax are also responsible for the company's accounting department.

The French General Administration of Taxation has four levels of agencies:

1. The national and international tax inspection bureau system is responsible for the verification, inspection, and punishment of domestic and international taxes.

2. Regional Taxation Bureau, which is the system responsible for regional taxation work.

3. The Provincial Taxation Bureau is responsible for taxation work at the provincial level.

4. Municipal tax offices are responsible for tax work at the municipal and other grassroots levels.

The French tax system has more than 85,000 staff members, all of whom are civil servants and are divided into different levels according to the civil servant hierarchy. The tax officials in each region and province are appointed and managed by the Ministry of Economy, Finance and Industry. The tax department is under the unified command of the state, and local governments have no right to interfere. Therefore, it has a strong sense of centralization.

We have mentioned above that tax agencies and corporate accounting agencies are closely related but different from each other. The Corporate Accounting Department of the Ministry of Economy, Finance and Industry has the Provincial Public Accounting Bureau, the financial district below the provincial level has the Finance Bureau, and the municipalities have finance offices. This set of institutions, collectively known as the Public Accounting Network, is responsible for the implementation of the revenue and expenditure of the national budget. As a result, tax formulation and collection (belonging to the tax bureau system) and tax collection and tax refund (belonging to the public accounting system) are both separated and closely linked, playing a role in mutual supervision.

As a means of financial supervision, France also has a financial director under the Ministry of Economy, Finance and Industry, who has great power. All public accounting affairs, whether national, local or individual enterprises, are under his supervision. under. In addition, France has also established an independent audit court, whose powers are delegated by Parliament and are not controlled by administrative power. It is responsible for reviewing the financial accounts of government departments and the financial accounts of public institutions such as state-owned enterprises. The organization has about 250 people.

Therefore, everything from taxation to corporate accounting and treasury revenue and expenditure are placed under double supervision and control.

(3) Scope of powers of the tax department

The power and scope of the French tax department are completely determined in accordance with the law.

The first step is to calculate the specific amounts of various taxes based on the tax rates in the Finance Act and levy taxes on legal persons and natural persons. For example, an individual receives an income tax return form every year, fills it out and sends it to the tax bureau. The tax bureau then calculates the amount of tax payable based on different tax rates and the specific circumstances of each individual, and then sends it back to the tax preparer.

Tax filers must pay taxes to the National Finance Bureau (TRESOR PUBLIC) before the specified date.

Secondly, the tax department has the right to audit companies and individuals, and has the right to require those under investigation to produce all financial accounts and bank accounts, and the right to require those under investigation (natural persons or legal persons) to explain all details. The tax department also requires various administrative departments and enterprises to provide relevant information and intelligence. This is known as the tax department’s “right to information.”

Third, after tax inspection and tax verification, the tax department has the right to fine taxpayers and require them to pay interest on tax arrears, etc. These fines, tax repayments, interest repayments, etc. are not only carried out in accordance with laws and regulations, but also determined by the tax department based on the specific circumstances of the taxpayer. As a result, the tax authorities have a certain degree of freedom.

Fourth, when a taxpayer refuses to pay taxes or fines, the tax department has the right to use all financial and economic means to seize or offset the taxpayer's property, or to impose tax on the taxpayer's income. Forced extraction, etc. Relevant administrative departments, whether central or local, must assist the tax department in their actions, otherwise it is illegal and may be prosecuted.

The above four aspects of the regulations give the tax department great power to take tax actions. It receives strong assistance from the national police, national gendarmerie, courts and other judicial circles, and is assisted by administrative departments at all levels. Therefore, some people say that as far as the tax system is concerned, France is not a democratic country, but a police state.

(4) Civil Rights and Tax Litigation

The tax system has mandatory power over taxpayers, that is, citizens, so how to protect citizens’ rights?

If an individual or company has a dispute with the tax department, it will be resolved through the administrative tribunal and administrative court. However, if it is a matter of indirect taxation, it can be appealed to the ordinary judicial system: such as the Grand Tribunal, the Court of Appeal, and the highest level is the Supreme Court. On the other hand, if a taxpayer intentionally evades or evades taxes and violates tax laws, the tax department can prosecute the taxpayer in a criminal court, usually in a misdemeanor court.

The above-mentioned judicial system ensures that when taxpayers have disputes or lawsuits with tax authorities, they can be arbitrated through the law and through the judicial department that is independent of the administrative system, so that the interests of taxpayers are protected by law. Protect.

In terms of specific procedures, taxpayers can first appeal to the superior authority of the tax department, and secondly they can appeal to the provincial tax commission. These two steps are procedures for resolving disputes with taxpayers within the administrative department. Third, there is an appeal to the Administrative Tribunal, which begins the judicial process. Fourth, there is an appeal to the Administrative Appeals Tribunal, which is an appeal against the decision of the Administrative Tribunal. Fifth, the case can be appealed to the Administrative Court. This is the highest level of appeal. This is the step many taxpayers take when they are involved in a dispute with the tax authorities. Generally speaking, people can request the assistance of a lawyer from the beginning of a tax audit. This is also an important step to ensure that taxpayers’ rights and interests are not infringed upon.

4. Examples of social contribution system and taxation

We have briefly introduced the French tax system above. However, for a taxpayer and a company, this is not all. To truly understand the French tax system as a whole, we cannot help but involve the social contribution system. The addition of taxes and social assessments constitutes a complete mandatory tax system, which has an important impact on France's economic life, political life and the daily lives of ordinary taxpayers.

(1) COTISATIONS SOCIALES

France is a welfare state, and people have corresponding social security for birth, old age, illness, death, unemployment, retirement, school enrollment, housing, etc. In order to support this heavy social security system, it is necessary to follow the principle of "the wool comes from the sheep" and allow everyone to pay social contributions based on their income.

Social contributions are paid according to a specific proportion of income by those who receive wages, pensions and other incomes. The employer is also required to pay the employer's share of the contribution. We list below the main proportions of contributions to wages.

1. Illness, maternity, disability, and death insurance: The employer pays 2.8%, the employee pays 6.8%, and ***9.6%.

2. Pension insurance: The employer pays 8.2%, the employee pays 6.55%, and ***14.75%.

3. Pension insurance: 1.6% will be paid for the portion exceeding the insurance limit.

4. Family allowance: The employer pays 5.4%.

5. Widows and widowers insurance: Employees pay 0.1%.

6. Work-related injury insurance: The employer pays about 2.36%.

7. Housing subsidy: Employers pay 0.1%, and enterprises with more than 9 employees pay 0.4%.

8. Unemployment insurance: Employees pay 3.22% and employers pay 5.34%.

9. Supplementary pension: employees pay 2% to 5%, and employers pay 3% to 10%, depending on the industry and position.

10. Universal Social Grant (CSG): 3.4% (the Jospin government plans to increase it to 7.5% from 1997).

11. Social Debt Service (RDS): 0.5%.

12. The proportion of contributions paid by non-salaried persons: 12.85%, determined based on income. Retirees pay 3.4%, plus old-age insurance and other contributions.

Although the above-mentioned social welfare assessment fee is different from the tax system and is collected by the joint collection agency of social assessment fee and managed by the National Social Security Treasury and Pension Treasury, it has increasingly become a "direct tax" , together with other taxes, has become a heavy burden on the French economy. Moreover, France's social insurance expenditures continue to rise, and the government continues to increase the proportion of universal social contributions (CSG) to fill the deficit, which has increased people's burden. At present, France's social insurance expenditure accounts for about 25% to 30% of its GDP, which is a very heavy burden.

5. Existing problems and prospects

Facing the 21st century, the French tax system will undergo a series of reforms. The rapid development of productive forces, rapid changes in economic and social levels and structures, and the evolution of people's concepts, thoughts, and mentality have all posed new challenges to the tax system.

(1) Existing problems

1. Heavy tax burden is incompatible with economic development

In the face of fierce international competition, reducing production costs, Improving production efficiency has become a priority for enterprises in various countries. As we mentioned above, France's heavy mandatory tax system has seriously hindered economic development and made it difficult for companies to reduce costs. For example, if a salaried employee receives a net salary of 10,00 euros, the employer will have to pay a total of 1,800 euros. Coupled with professional taxes, etc., which are directly related to the number of salaried persons and total salary, this burden is even heavier. Therefore, employers would rather replace people with machines than hire people at all. In addition, French labor protection laws are very strict. It is easy to hire but difficult to fire, which makes companies reluctant to hire more. This is also a structural factor behind France’s high unemployment rate. Therefore, economists agree that although the French economy will rebound at a growth rate of 2% to 3%, it will have little impact on reducing unemployment.

2. Tax equality and “killing the rich and giving to the poor”

France adopts a highly progressive tax system for income tax, with the highest tax rate as high as 56.8%, which is higher than other industrialized countries. By comparison, the top rate is 53% in Germany, 51% in Sweden, 40% in the UK and just 39.6% in the US. As a result, richer people pay more taxes. Add to this the tax on the extremely wealthy, which is also higher than in other industrialized countries. As a result, the rich and high-income earners are trying every possible means to reduce taxes, avoid taxes, and even transfer their wealth abroad, emigrate themselves, etc.

In this regard, the left and the right have different ideas: The left believes that those with more income and wealth should pay more taxes. This is the basic principle of social mutual aid. The right wing believes that the main driving force of the economy comes from enterprises and entrepreneurs. Only by reducing the tax burden, allowing high-income earners to stay in France, and attracting more investors and high-income earners to come to France can the economy be revitalized, unemployment reduced, and France richer. . Therefore, the left forces represented by the Socialist Party and the right forces represented by the Gaullist Alliance for the Defense of France and the French Democratic Alliance implemented different reform policies when they were in power.

In addition, because France has set a higher tax line, only 51% of the total households pay income tax. In Germany, this proportion accounts for 62.3%, and in the United States, it is as high as 94%. In contrast, high-income earners have become the main source of income tax.

3. The power of the tax department and the rights of citizens

Although the tax department is based on law, given that taxation is a source of national funds, those in power have always continued to strengthen the power of the tax department. , resulting in the weakening of citizens’ rights in the field of taxation. For example, according to the Constitution and European Human Rights Law, any citizen can appeal for reasons before being punished by law, and judges can make rulings under equal conditions for both parties to the dispute. But the same cannot be said for tax penalties. For example, fines are often automatically imposed solely on the basis of late submission, and it is difficult for those who are fined to appeal. In this regard, executive power replaces judicial power and can punish taxpayers without authorization. In this regard, the Judges Association has raised objections.

4. The tax system is too complex

Direct tax, indirect tax, income tax, transfer tax... and so on. The development of France's tax system has become very complex and cumbersome. Maintaining this huge tax department itself consumes a large amount of the state's budget. How to reform? This is also a question that people in the political and judicial circles are thinking about.

(2) Reform Prospects

This is what the left and right governments have been doing in recent years. Different ideologies have different ideas on tax adjustment: the reform implemented by the right-wing government aims to lower the top income tax rate to benefit high-income earners, while also increasing the tax threshold so that more people who are not well-off can be exempted. Pay taxes. In terms of professional taxes, the burden on enterprises will be further reduced, while value-added tax will be increased to supplement tax sources. Its purpose is to stimulate investment and drive economic recovery. The left-wing government, on the contrary, refused to lower the top tax rate and instead restricted the rights of high-income earners in terms of social welfare while increasing subsidies for low-income groups. In terms of corporate tax, the tax rate will be increased for large companies with huge profits, while the tax rate for small and medium-sized enterprises will remain unchanged. Its purpose is to take more care of social equality and reduce the growing gap between rich and poor.

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As for the remaining comparison between China and France, lz you can do your best Bar!