dustrat
18th Sep 2011, 08:29
As a recurrent topic, it's always a brainwashing exercise for most people to figure out where and how much to pay.
I am a french citizen working abroad for 18 years. Let me share with you my knowledge of a quite obscure system.
So let's try to be clear and concise:
1- The money you are earning is generally speaking to be taxed in the country you are working in.
2- French tax system is based on the notion of "fiscal residency".
This means that you have your main address in France. There is no breaking number of days involved. The idea that you need to spend more than that many days out of the territory to be exonerated is a misunderstanding of the system dating from the initial contract tailored for the employees of Oil companies and other main french companies involved abroad.
So your main address is in France and you are not registered in any consulate as a resident of any other country, then your fiscal residence is France.
As such you are supposed to file an Income tax declaration every fiscal year on which you will need to declare your investment and professional incomes and revenue.
Now, there are numerous countries that signed up bi-lateral agreement with France in order to avoid double taxing. That allows you to deduct a certain amount of your income tax to the point of exoneration, depending on the amount of tax paid in this country.
In all cases if required you will have to prove you actually paid such tax in such country...
Non-resident profile: your main address is abroad.
You then need to declare your new residency at the "Trésorerie des non residents" (Non residents treasury).
If you keep a real estate or monetary investment in France, you will need to fill out an income tax declaration for this purpose. Iif you are paid out of France by a foreign company, your income revenue is non taxable, but still need to be declared on a separate specific form.
If you keep nothing in France then nothing is to be declared.
Now all the above is relevant if you are actually playing the game...
For those who are willing to go stealth, know that fiscal controls for individual in France happens and are based on quotas per fiscal areas or reporting (denouncement - Yes it bloody happens:E).
It also happens when your activity produces a Notary act. Let me explain here:
You are the happy owner of a real estate that you decide to sell for moving elsewhere or generating profit: 3 out of 5 chances to get controlled.
Individual controls go up to 3 years back... Something to keep in mind.
Hope all the above will be helpful. Any questions you are welcome to let me know.
Fly safe.:ok:
I am a french citizen working abroad for 18 years. Let me share with you my knowledge of a quite obscure system.
So let's try to be clear and concise:
1- The money you are earning is generally speaking to be taxed in the country you are working in.
2- French tax system is based on the notion of "fiscal residency".
This means that you have your main address in France. There is no breaking number of days involved. The idea that you need to spend more than that many days out of the territory to be exonerated is a misunderstanding of the system dating from the initial contract tailored for the employees of Oil companies and other main french companies involved abroad.
So your main address is in France and you are not registered in any consulate as a resident of any other country, then your fiscal residence is France.
As such you are supposed to file an Income tax declaration every fiscal year on which you will need to declare your investment and professional incomes and revenue.
Now, there are numerous countries that signed up bi-lateral agreement with France in order to avoid double taxing. That allows you to deduct a certain amount of your income tax to the point of exoneration, depending on the amount of tax paid in this country.
In all cases if required you will have to prove you actually paid such tax in such country...
Non-resident profile: your main address is abroad.
You then need to declare your new residency at the "Trésorerie des non residents" (Non residents treasury).
If you keep a real estate or monetary investment in France, you will need to fill out an income tax declaration for this purpose. Iif you are paid out of France by a foreign company, your income revenue is non taxable, but still need to be declared on a separate specific form.
If you keep nothing in France then nothing is to be declared.
Now all the above is relevant if you are actually playing the game...
For those who are willing to go stealth, know that fiscal controls for individual in France happens and are based on quotas per fiscal areas or reporting (denouncement - Yes it bloody happens:E).
It also happens when your activity produces a Notary act. Let me explain here:
You are the happy owner of a real estate that you decide to sell for moving elsewhere or generating profit: 3 out of 5 chances to get controlled.
Individual controls go up to 3 years back... Something to keep in mind.
Hope all the above will be helpful. Any questions you are welcome to let me know.
Fly safe.:ok:
