Taxable income includes all the income, profits and gains of all kinds received by the taxpayer and by the members of the tax household, irrespective of the source whether in France or abroad.
It is an annual, total, net income :
- the taxpayer is taxable each year ;
- the income received may come from a single category of income or from several categories ;
- the income declared is decreased by the spending made with the aim of the acquisition or in the preservation of the income (deductions and special abatements) ;
- the income is reduced by deficits from previous tax years.
Apart from long term capital gains that are subject to a proportional tax scale, the other income is taxed according to a sliding income tax scale.