€ 850 (EXCL. VAT)
- F18: 850€ IRPP – inpatriation
What are the requirements?
To benefit from the Inpatriates Scheme, you must:
1. Not have been a French resident in the 5 years prior to taking office.
2. The employee/manager has to be French tax resident according to points a and b of point 1 of Article 4B of the Tax Code (CGI in French)
3. Hold a position, whether it be fixed term or not, in a company established in France.
4. Have been recruited by either:
a. A company established abroad
b. A company established in France directly.
What are the exemptions?
The impatriation premium. The exempted amount of which is equal to:
– The actual amount: outlined in the employment contract or in an amendment thereto, drawn up prior to taking up duties in France
– A lump sum, corresponding to 30% of the total net remuneration (excluding benefits linked to employee savings schemes or employee share ownership schemes)
Please note, the option is not valid for an employee recruited by a foreign company on behalf of a French company; in this case it would be necessary to write an amendment to the contract.
Are these exemptions capped?
Optionally, inpatriated managers and employees may choose either:
- an overall ceiling: in this case, the inpatriation allowance + the travel allowance cannot exceed 50% of the total net salary of contributions and the deductible portion of the CSG before the lump sum deduction for professional expenses of 10 % or deduction of actual costs.
- A ceiling on the exemption from travel compensation equal to 20% of the net taxable remuneration, excluding the portion exempt from the inpatriation premium.
This option may be different each year, a calculation has to be made to choose the most attractive option.
How long can you benefit from this plan?
The duration of the exemption depends on the date of taking office in France:
- Before 06/07/2016 : the exemption applies until 31st December of the 5th year following the date of entry into France.
- As from 06/07/2016 : this applies until 31 December of the 8th year following the date of entry into France.
Thank you for your email.
My name is XXX and I am a Business Developer at Maupard.
We would be more than happy to help you with your inpatriate tax returns, this is something we do regularly for clients.
Could I suggest a (skype) call, perhaps sometime this week if you are available? During this call we can discuss your exact needs and any questions you may have. How does this sound?
Before then, however, if you would like to know more about the service we offer, you are more than welcome to have a look at our article and online service related to inpatriate’s tax returns:
I. First contact meeting to discuss your needs
II. Collection of supporting documents
- You will sign a formal proxy authorizing us to take care of tax formalities on your behalf
- Collection of the supporting documents disclosing requested figures to be reported in your income declaration (salary, income from all professions, land income, pensions, shares, and especially foreign income)
- Collection of your identification documents (ID, passport, family status) and your employment contract (or representation contract).
III. Tax analysis and simulation
- Assessment of compliance with the scheme’s criteria
- Simulation of your various options
- Appointments to discuss calculated items
- Filing your annual return
- Submission online
- Delivery of the submission certificate.
- Follow-up with the tax inspector to avoid double taxation