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Lobbying The ‘Grand Paris’ Project
The Greater Paris Investment Agency welcomes the creation of the “Société du Grand Paris”, and will give all its support to make it successful. The “Société du Grand Paris” has the key mission to realize the automatic sub line connecting 7 economic and technology centres, including the valorisation of the estate close to the stations.
They will be linked together and to downtown Paris by an automated rail circuit
But this is a very ambitious calendar which requires to accelerate the actual process. |
| Measures to enhance France 's attractiveness |
Making France more competitive and attractive:
- attract strategical business operations : the tax regime of headquarters is extended to R&D centers; new measures have been adopted to reinforce the legal and tax security of investors and taxation of impatriates has been brought into line with the best international practices., i.e. taxation is now proportionate to the time actually spent working in France, applying a principle similar to remittance-basis taxation in the UK;
- attract internationally recognized researchers : in research, measures adopted in 2003 are being extended to and encourage French expatriates with doctoral qualifications to return; the links between public sector researchers and businesses are favored;
- attract the best students : foreign students are a focus of attention, with a wide variety of measures designed to attract them in business-related fields and sciences in French higher education.
Expatriates are welcomed
Specific permits to facilitate the entry of foreign workers:
- “the Skills and Expertise” residence permit (valid for 3 years on a renewable basis) for foreign executive and employees who want to set up an economic, scientific or cultural project in France
- The “ Expatriated Salaried Employee “ temporary residence permit (valid for 3 tears) designed for intra-group international mobility
- The “Resident Permit” valid for 10 years for exceptional economic contribution to France
A favourable and advantageous tax system for expatriates since 2009:
- Up to 50% tax exemption on income, expatriation bonus and supplementary income for work performed outside France
- Tax deductions for social security payments made in the country of origin if there is a bilateral social security agreement with France
- 50% income tax exemption for certain income such as dividends, interests, fees, …
- Wealth tax exemptions on assets located outside France
A more flexible labor market to affect positively businesses and taxpayers:
- Companies are free to introduce their own practices for working hours
- The limit for overtime hours can be determined by collective agreement
- Probation periods of permanent employment contracts are extended
- Creation of a new form of short-term contract
- Employers and employees can now separate by mutual agreement
The best research tax credit in Europe
The French Government has undertaken a major reform of the French research tax credit, making it more favorable and simplifying procedures:
- Research tax credit rates increased to 30% from the original 10% applicable to the “volume” of the total R&D expenditure for the first category up to a limit of €100 million.
- An “introductory bonus” is available for companies applying for research tax credit for the first time, or for those that have not received the tax credit within past five years. This bonus provides a research tax credit rate of 50% for the first year and 40% for the second year.
The company is subject to a €2M corporate tax for 2008 and is applying for research tax credit for the 1st time.
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