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.
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!
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.i...