Non-residents French incomes tax: If you are Non-Resident and receive income from French sources, you are subject to Income Tax.
If you are reporting your income for the first time, you need to send your handwritten tax declaration to the French Tax Office for Non-Resident individuals. After this, all following declarations can be made online, via the website www.impots.gouv.fr. In order to do this you will need an access code that you will receive after making your first declaration. This year the deadline for handwritten declarations is the 18th of May 2016, and the 7th of June 2016 for all online declarations.
In France, the amount of Income Tax to be declared is determined by the amount of income received the year before. Thus, your income from the year 2015 must only be declared this year (2016). Conversely, if you have received any income, in France, for the first time this year, then you only have to declare this in 2017.
In France Non-Residents may be classed as: “Schumacker Non-Residents”.
This applies to you if you make the majority of your income in France, as well as:
- Your tax residency address is located in an EU Member State or in the European Economic Area,
- Your French withholding tax is greater or equal to 75% of all your income,
- You do not benefit from any scheme in your country of residence that reduces your taxes due to your personal or family situation, or a low level of income in that country.
If you meet these requirements you can request that your tax income declaration be classified as that of a person domiciled in France for tax purposes. The benefits of being considered a “Schumacker Non-Resident” are:
- You can deduct expenses from your income (including support benefits),
- You can benefit from tax cuts and tax credits in the same way as French residents,
- The withholding tax rate on your income and your French profits is removed,
- The minimum income tax rate of 20%, originally only applicable to Non-Residents, is no longer applicable. You will be taxed in the same way as a French resident.
In principle, salaries, pensions and annuities paid to Non-Residents are subject to an income tax (the withholding tax replaces the income tax) between 0% and 20%. In this case, there is no obligation to declare this tax unless the income taxed exceeds 41 909€ in the year 2015. Income levels above this threshold will be taxed at a minimum rate of 20% and the withholding tax already paid will be deducted from said income tax.
If you have any questions regarding the French income tax declaration, do not hesitate to contact us via telephone +33 (0) 1 53 93 94 20 or [email protected]. Our team of experts will happily assist you with any queries you might have.