Worldwide Taxation for French Residents
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Worldwide Taxation for French Residents
As a resident of France, i'm hoping that any long-haul pilots can help?
As i'm sure you know, the authorities are about to change the way they tax residents to include worldwide income. Up until now, only income earned within France has been liable to taxation.
I understand that the long-haul pilots with Air France/Corsair have an agreement where they pay a reduced level of tax due to their international operations. This amounts to approximately 12% of total income.
If anyone has any information regarding the proposed changes and the longhaul "agreement," there will be 40 very appreciative Virgin pilots!
Many Thanks in advance.
As i'm sure you know, the authorities are about to change the way they tax residents to include worldwide income. Up until now, only income earned within France has been liable to taxation.
I understand that the long-haul pilots with Air France/Corsair have an agreement where they pay a reduced level of tax due to their international operations. This amounts to approximately 12% of total income.
If anyone has any information regarding the proposed changes and the longhaul "agreement," there will be 40 very appreciative Virgin pilots!
Many Thanks in advance.
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I just found a text who says that you don't have to declare anything in France if you already pay your income tax abroad ,corresponding to at least 2/3 of what you would have payed in France. Then there is another exemption if you stay less than 180 days in France, which should be the case with Virgin.The problem starts when you earn revenue in France, even if it's negligeable: in this case you have to declare your British earnings in France. Anyway, every time you call the tax service, you get a different answer. The only solution if you want an official answer is to write them.But then, once you've established contact, you triggered their interest.
Here's the adress in Paris if you want
Impôts (Non-Résidents - DRESG)
cellule de renseignements
9 r Uzès 75002 PARIS
By the way, do you have a good tax advisor in the UK? I'm starting with Virgin in 10 days
Here's the adress in Paris if you want
Impôts (Non-Résidents - DRESG)
cellule de renseignements
9 r Uzès 75002 PARIS
By the way, do you have a good tax advisor in the UK? I'm starting with Virgin in 10 days
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3MTA3,
Many thanks for that and welcome to Virgin!
The problem has arisen because apparently the UK authorities have informed the French of how little UK tax we pay (approx 2%) which is well below the 2/3 you suggest. The 180 day rule shouldn't be a problem but they still want their cut. Whilst I have no aversion to paying SOME tax in France, when I spend so much time abroad I'd rather not be liable for the full monty.
I don't use a tax adviser in the UK and do the annual return myself. I have used Wilfred T Fry (Hastings) in the past but left them due to their high charges.
Many thanks for that and welcome to Virgin!
The problem has arisen because apparently the UK authorities have informed the French of how little UK tax we pay (approx 2%) which is well below the 2/3 you suggest. The 180 day rule shouldn't be a problem but they still want their cut. Whilst I have no aversion to paying SOME tax in France, when I spend so much time abroad I'd rather not be liable for the full monty.
I don't use a tax adviser in the UK and do the annual return myself. I have used Wilfred T Fry (Hastings) in the past but left them due to their high charges.
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Merci merci, ça y est c'est officiel, je commence sur A340 le 8 mars....
Shanwick Shanwick, I think in our case the 2/3 have to be based on the tax you would pay in France if you're 180 days abroad.I had once a lady from the tax ofice on the phone (it was last year) who told me that according to article22 alinea3 from the tax law, there is a special status for the pilots and we should only pay our taxes in the country where our airline is based. I have no idea if this law still exists......Last week I called (from a public phone and using a fake name
) the person I talked to had no clue.
Shanwick Shanwick, I think in our case the 2/3 have to be based on the tax you would pay in France if you're 180 days abroad.I had once a lady from the tax ofice on the phone (it was last year) who told me that according to article22 alinea3 from the tax law, there is a special status for the pilots and we should only pay our taxes in the country where our airline is based. I have no idea if this law still exists......Last week I called (from a public phone and using a fake name
) the person I talked to had no clue.
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Hi,
Firstly let me say I dont know if this is the case or not for Pilots, as I am in the Oil Industry myself, but I do work internationally.
Regarding the 183day rule in France, I was told by the french authorities that this would only apply ( ie me not having to pay French tax, as Im in the country for less than than 183 days/year, though being resident in France) if, and only if, I worked for a French Company/French based company..... Working for a company based in any other country, if I chose to be resident in France I would have to declare my earnings in France and pay tax in France, though I would get a rebate for taxes paid elsewhere.
The key word is resident, I just visit France and dont work in France....... Likewise if you are UK resident you declare your earnings to the inland revenue, the difference is that it is a 90 day/year rule in the UK. If I could get residency in a country where you pay no tax, then Id be laughing.....
In my situation, I discovered/realised I had to pay tax somewhere out of three countries, so I did some sums and declared my earnings to the country that would charge me least.....
Regards, SD..
PS. If someone can show me Im wrong and back it up with something concrete that I dont need to be paying tax, then please say something
Firstly let me say I dont know if this is the case or not for Pilots, as I am in the Oil Industry myself, but I do work internationally.
Regarding the 183day rule in France, I was told by the french authorities that this would only apply ( ie me not having to pay French tax, as Im in the country for less than than 183 days/year, though being resident in France) if, and only if, I worked for a French Company/French based company..... Working for a company based in any other country, if I chose to be resident in France I would have to declare my earnings in France and pay tax in France, though I would get a rebate for taxes paid elsewhere.
The key word is resident, I just visit France and dont work in France....... Likewise if you are UK resident you declare your earnings to the inland revenue, the difference is that it is a 90 day/year rule in the UK. If I could get residency in a country where you pay no tax, then Id be laughing.....
In my situation, I discovered/realised I had to pay tax somewhere out of three countries, so I did some sums and declared my earnings to the country that would charge me least.....
Regards, SD..
PS. If someone can show me Im wrong and back it up with something concrete that I dont need to be paying tax, then please say something
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French Tax for resident long haul pilot's
Hi, I have just moved to France and as a corporate pilot flying Worldwide Ops «90 days in UK and «180 days in France am very interested to know what was the final outcome of your tax enquiries. i.e. does the concession for pilots exist and if so how do I get into the scheme. regards
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You have to go on the "MINEFI" website and download the agreement which concerns you (Country where you are resident). Based on an OEDC frame, there are some slight differences between the "ConventionS". So, it is better you check the text which applies to your case.
MINEFI= Ministeres des Finances. I think they give french and English text (If available)
MINEFI= Ministeres des Finances. I think they give french and English text (If available)
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Franco-British tax treaty of 1968
Hello,
First sorry for my mistakes in English, I just wanted to clarify the tax situation in France of British citizen pilots who works for a Uk based company in international trafics.
Under the terms of the Franco-British tax treaty of 22 May 1968, salary ared taxed in the country where the activity is carried on except in case of temporary mission (there are three conditions in this case: work less than 183 days a year in the other country etc...), in which case the salary is taxed in the country of residence. A provison of the tax treaty provides an exception to employees who work for a company in international trafic (pilot, steward,etc..).
Pilots and stewards working in international trafic are taxed in the country where the company is based.
Therefore pilots who are resident in France and who work for a Uk company are exempt in France on their salary. But this salary is taken into account in order to determine the rate of taxation applicable to their French taxable income.
The problem for the French tax administration is that under english law, the non residents are taxable only in the fraction of the income which is introduced in the UK. This entertain that pilots working for British Airways, Virgin benefit from a double exemption!
Many pilots became resident in France only for this purpose.
France and the Uk have signed a new tax treaty which is not yet in force. Under the terms of the new treaty, the method of taxation remain the same but the method to avoid double taxation will change. France will not use the method of the "taux effectif" which results to a double exemption. In case of double taxation, France will grant a tax credit which is equal to the British income tax. As there is no British income tax or a few, there will not be anymore a double exemption.
That is the reason why many of our clients who are pilots have begun to move and go away.
France will no more be a tax paradise for british pilots. But nothing for the moment is certain untill the new treaty enter in force. Maybe they have amended the original new treaty.
The rule of the 2/3 applies for French tax residents who works abroad. There are a total exemption or a partial exemption but both are ruled by strict conditions.
First sorry for my mistakes in English, I just wanted to clarify the tax situation in France of British citizen pilots who works for a Uk based company in international trafics.
Under the terms of the Franco-British tax treaty of 22 May 1968, salary ared taxed in the country where the activity is carried on except in case of temporary mission (there are three conditions in this case: work less than 183 days a year in the other country etc...), in which case the salary is taxed in the country of residence. A provison of the tax treaty provides an exception to employees who work for a company in international trafic (pilot, steward,etc..).
Pilots and stewards working in international trafic are taxed in the country where the company is based.
Therefore pilots who are resident in France and who work for a Uk company are exempt in France on their salary. But this salary is taken into account in order to determine the rate of taxation applicable to their French taxable income.
The problem for the French tax administration is that under english law, the non residents are taxable only in the fraction of the income which is introduced in the UK. This entertain that pilots working for British Airways, Virgin benefit from a double exemption!
Many pilots became resident in France only for this purpose.
France and the Uk have signed a new tax treaty which is not yet in force. Under the terms of the new treaty, the method of taxation remain the same but the method to avoid double taxation will change. France will not use the method of the "taux effectif" which results to a double exemption. In case of double taxation, France will grant a tax credit which is equal to the British income tax. As there is no British income tax or a few, there will not be anymore a double exemption.
That is the reason why many of our clients who are pilots have begun to move and go away.
France will no more be a tax paradise for british pilots. But nothing for the moment is certain untill the new treaty enter in force. Maybe they have amended the original new treaty.
The rule of the 2/3 applies for French tax residents who works abroad. There are a total exemption or a partial exemption but both are ruled by strict conditions.
