Expatriate tax ebook - France

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
The employers of non EU nationals are usually required to apply for a work permit prior to the employee taking up employment in France. It is, therefore, important that the expatriate's employment contract and benefit package is structured tax efficiently before the contract is submitted to the Department of Trade and Employment in France.

Employment visas
Under the work permit procedure the employer will be required to advertise the position in France and the EU before the Department of Trade and Employment will consider issuing a work permit to a non EU national where a suitable candidate cannot be found.
A residence visa must also be obtained to allow the expatriate to live in France. Where the expatriate's spouse and family relocates to France, relevant visas and a separate work permits (where the spouse will also work) will be required. Where the expatriate is an EU national the above procedure is usually not required.

Tax year
The French tax year runs from 1st January to 31st December.

Tax returns and compliance

The individuals who are French resident for tax purposes must file their tax return before end of May. Non French resident for tax purposes must file before 30th June.

Payment of the French Tax

The first year of liability, the taxpayer shall pay once a year in September, the global amount of the tax due for the last tax year. The following years, the tax is paid by 3 tax instalments based on the tax paid the previous year, the remaining balance being paid in September. The taxpayer is also entitled to pay on a ten month period (from January up to October).

Income tax rates

What are the income tax rates in your country? Progressive Income Tax Rates for the 2009 Income

(Rates for 2010 income will be known in December 2010 only)

The taxable income is divided of the tax household in a number of equal parts (e.g. one part for a single person, 2 parts for a married couple, 0.5 part for each of the first two dependant children, 1 part from the third child). Next, the progressive tax scale is applied on the taxable income per part thus obtained. Lastly, the partial tax is multiplied by the number of parts determining the payable gross tax.

Information about France: