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FR1.3.1ÌýÌýÌýÌý Income tax

Income tax is payable by French residents on non-exempt income derived from all worldwide sources, subject to tax treaties (Article 4 A CGI). For income tax purposes, France covers mainland France, the coastal islands and Corsica; and overseas »åé±è²¹°ù³Ù±ð³¾±ð²Ô³Ù²õ of Guadeloupe, French Guiana, Martinique, Réunion and Mayotte (BOI-IR-LIQ-20-30-10).

Taxable income consists of annual disposable income from all sources. Income is identified based on its nature, and then allowances, deductions, and treaty provisions are applied in calculating net taxable income subject to progressive tax rates. The general principle is that losses from one category of income may off-set profit from other categories and may be carried forward for six years. However, this principle is subject to limitations. Certain losses may be offset only against income from the same category of income. These include capital losses on quoted stocks and bonds.

The following types of income are specifically subject to tax in France:

1. Ìý

   •ÌýÌýÌýÌý income derived from immovable property (see FR2.2 to FR2.4 for more on the taxation of rental income in France

2. Ìý

   •ÌýÌýÌýÌý employment income