The flat tax (PFU), introduced by the 2018 Finance Act, applies an overall rate of 30% to investment income, consisting of 12.8% income tax and 17.2% social levies. This measure is codified in Article 200 A of the CGI.

The standard 10% deduction for professional expenses on wages and salaries is capped at 14,426 euros for 2024 income. This cap is defined by Articles 79 to 81 of the CGI.

For rental income below 15,000 euros, a standard allowance of 30% is applicable under the micro-foncier regime. This reduces the taxable base before calculating the tax.

French income tax is based on the self-assessment principle, where taxpayers must voluntarily declare their income each year. The tax authorities retain the right to audit ex post, as set out in Articles 1 et seq. of the CGI.

In France, unmarried cohabiting partners form two separate tax households, unlike married or civil partnership couples who constitute a single tax household. This information is crucial for understanding the composition of the tax household under the relevant articles of the CGI.

The family quotient mitigates tax progressivity for families, but the tax benefit is capped at 1,791 euros per additional half-share beyond the two base shares. This is provided for in Articles 193 to 197 of the CGI.

For real estate capital gains, a full income tax exemption is granted after 22 years of holding. Social levies, however, are exempt after 30 years of holding, as provided in Articles 150 U to 150 VH of the CGI.

Capital taxation includes several distinct forms. The flat tax applies to investment income, while real estate capital gains have a separate regime with a total rate of 36.2%. The primary residence is exempt from capital gains tax.