It can often be difficult to know if you need to pay income tax in France, and how to make sure you are fully compliant with the French taxman. Luckily, our french tax experts are here to help.
If you meet any of the 3 following tax residency criteria, you will need to make an income tax declaration in France:
• Your permanent residency or family home is located in France
• Your main professional activity is performed in France (based on the time spent)
• Your main source of revenue is located in France (based on the income received)
Also, if you are a non-resident and receive income from French sources, or you let one or more properties in France, you are subject to French Income Tax.
In France, the taxable basis to be declared is determined by the income received during the previous civil year starting 1st of January and ending 31st of December. Thus, your income generated during 2017 must be declared in 2018 etc.
Tax returns can be declared manually or online. This year, the deadline for handwritten declarations is the 17th of May 2018, and the 7th of June 2018 for all online declarations.
The French calculation method is as follows:
1. Determination of the taxable basis
2. Imputation of tax deficits
3. Deduction of expenses
4. Application of arbitrary deductions
5. Calculation of family quotient
6. Imputation of foreign credit tax
7. Deduction of tax rebate, if any
8. Deduction or reimbursement of tax credit, if any
Here at Maupard, we will complete your income declaration in compliance with French tax standards, using our dedicated software. If you are unfamiliar with the French tax administration, this process can be confusing but our french tax experts will take care of everything.
We will be in constant communication with the tax insepctor to ensure that he/she has a complete understanding of taxation applicable to our non-resident clients.
All we need from you are all of your relevant documents!