Do you earn in both France and the UK? – NDTT (Non-Double Taxation Treaty) between the UK and France
The NDTT is a treaty that is agreed upon between two countries allowing a tax credit to people who are earning across two countries. The France and the UK established an NDTT treaty in 2009.
First of all, under the French rules a person is considered to be a French tax resident if any of the following applies to them:
- The person has his or her home in France, i.e. the place where the person or family normally lives. It is the place of habitual residence, irrespective of temporary stays elsewhere due to the needs of the professional, leisure, or exceptional circumstances.
- The person has his or her main residency in France. If the person has spent more than 183 days within the same year in France, it is deemed to be their main place of residence.
- The person has professional activity in France. This criterion applies to people who carry out a professional activity in France, whether or not they are employed in France, unless they justify that this activity is carried out on an ancillary basis in France
- The person’s main economic interests are in France. Meaning his or her main business or investments are in France. They have a registered office in France and it is where they manage their assets.
If one or more of the above criteria apply to you, then you are obliged to declare and pay tax in France.
A French citizen or a non-French citizen who has revenue solely in France, is only taxed on the income they receive from French sources. However, if you have income in France and another country, you must then declare your total, worldwide income in France, even if this income has already been taxed abroad.
If the foreign income is already exempt, then you must declare and pay the tax on your French earned income. If your income is already taxable/taxed abroad then the NDTT prevents any double taxation as you will receive a tax credit in France.
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