Territorial Economic Contribution: Who Qualifies and What You Get
Learn how this local business tax works in France and why you might still have to pay even if your company is not making a profit.
The Territorial Economic Contribution is a local tax paid by businesses to support the regions where they operate.
Who it's for
This tax applies to any business that carries out regular professional activities within the territory.
What you get
This is a contribution directed toward local authorities to fund the infrastructure and services used by businesses in your area.
What it costs you
You must make an annual payment. The amount is calculated based on the rental value of the property your business uses for its activities.
The catch to know
Even if your business has no turnover or is not making a profit, you may still be required to pay a minimum amount if you maintain business premises.
How to apply
- Determine the rental value of your business premises.
- Monitor your official tax notices for the yearly assessment.
- Make your payment to the relevant tax authority by the deadline.
- Check the official government portal for specific calculation details.