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Taxes are actually lower than in most US states, when it comes to profits. Obviously we have a lot of added taxes when it comes to salaries (by paying an employ

by pikzen 10y ago

Taxes are actually lower than in most US states, when it comes to profits. Obviously we have a lot of added taxes when it comes to salaries (by paying an employee 2000€/month, as a company you can expect to pay ~4000€ when you add up everything). But as a startup, you have so many ways of diminishing your taxes. You can deduce your investment into R&D when it is a least 20% of your costs, up to 80.000€/year, "young innovative enterprises" (JEI) get a 50% tax break for 7 years, the CIR is quite literally 30% of your R&D paid by the state, I can't even list them all because there are so many. As a startup, you are most likely going to choose to pay impôts sur la société, which is taxed at 15% for the first 38.120€ of benefits, then 33.3%. In your example, 5000€/month adds up to 60000/year, so the first tax bracket takes 5.718€ out, and the second one 7.220€, for a total of 12.938€ in taxes per year. Once again, that is before any tax rebate, which can very easily get your down to maybe 6.000€/year[1] The high profile french leaving were leaving for tax havens, so I'm not sure that's really a good example. [1] http://www.impots.gouv.fr/portal/dgi/public/professionnels.impot?pageId=prof_impot_societes&typePage=cpr02&sfid=501&espId=2&communaute=2&impot=IS http://www.impots.gouv.fr/portal/dgi/public/professionnels.i...

readhn 10y ago
Ok. What happens when you cross that "not a start up anymore" line, lets say in a successful fast growing business in a year or two. Sounds like a lot of rebates and freebies disappear and taxes and other liabilities increase, as of course expected. Im all for the idea, but 195euro/desks are not a solution IMO. If you want to create thriving business scene (in any country) - drop small business tax rates (and other liabilities) to 0-5% and lock them there for first 5 years. Then if business makes it successfully to the commercial stage in 5 years - increase taxes to the current "market rate". Ka-ching! Then You really have a new start up mecca!

by pikzen 10y ago

readhn 10y ago

Ok. What happens when you cross that "not a start up anymore" line, lets say in a successful fast growing business in a year or two. Sounds like a lot of rebates and freebies disappear and taxes and other liabilities increase, as of course expected. Im all for the idea, but 195euro/desks are not a solution IMO. If you want to create thriving business scene (in any country) - drop small business tax rates (and other liabilities) to 0-5% and lock them there for first 5 years. Then if business makes it successfully to the commercial stage in 5 years - increase taxes to the current "market rate". Ka-ching! Then You really have a new start up mecca!