GUIDE TO RETURNS TAX


If you are fi scally resident in France, you will need to complete an annual tax return – this may sound daunting,


but with a little preparation and an understanding of how the system works, completing your French tax returns can be a surprisingly painless process, says Catharine Higginson


S


o what is a fi scal resident? Quite simply, it is anyone whose main residence is in


France or who works in France, or whose main economic interests are in France. In other words, French fi scal residency will apply to almost everyone living in France with a small number of exceptions for those with dual fi scal residency. If your home is connected to


the internet, you are required to complete and fi le your tax return electronically. If you don’t have internet access, you may complete a paper form but note that the deadline for returning the paper version is earlier than for the online one. The declarations for the


2024 income tax return (which concerns income received in 2023) will begin in April 2024 and the deadlines for completing the return vary slightly from zone to zone. You can fi nd out the fi nal dates for your department on the French adminstration website (service- public.fr/simulateur/calcul/ declarationimpots). If this is not the fi rst tax


return you’ve fi led in France, you may be able to benefi t from ‘automatic’ reporting. However, this will only apply if you were taxed just on pre-completed income (i.e. salaries) and there has been no change. If this is the case, you will be notifi ed by


invalidity allowance and child maintenance payments”


the tax offi ce who will contact you in the spring to let you know exactly what taxable income has been withheld. You do, however, still need to


check all the other details that may have been automatically completed and confi rm that it is correct. This will include family status and make up – i.e. marital status and number of dependents; income from wages and pensions; expenses


paid for via CESU (le chèque emploi-service universel), usually for services in and around the home such as cleaning and gardening; or Pajemploi – a similar system for parents to pay wages and social charges for childminders. For those who are fi scally


resident in France, taxation applies to all of your income, whether it comes from French or overseas sources, and it


allowances are referred to as pensions, including retirement pensions,


“In France, all kinds of


will apply to all the members of your household meaning their income and expenses are taken into account before establishing a household taxable amount. Adult children born between 2001 and 2003 must complete an individual tax return. However, they can choose not to opt for personal taxation and remain attached to the parental household.


INCOME TAX Income tax in France is calculated on a progressive scale that includes multiple tax brackets, each with a diff erent tax rate ranging from 0% to 45%. The scale changes annually and is set by the yearly budget. The 2023 scale allowed for 0% tax up to €10,777, then 11% for income €10,778 to €27,478, 30% for €27,479 to €78,570, 41% from €78,571 to €168,994 and 45% for amounts over that. The family quotient also applies when calculating the tax brackets. This refers to the number of ‘parts’ that make up your household, meaning that a couple with three children will pay less tax than a single person or a couple without children. However, the scale is only


The gouv.fr website has a lot of useful tools, such as a tax calculation simulator 88 FRENCH PROPERTY NEWS: March/April 2024


one element of the overall tax calculation, as income from diff erent sources will attract diff erent tax and, indeed, allowances. You can get a more


© SHUTTERSTOCK


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148