Category Archives: French Tax

French tax updates and a link to our services for the preparation and filing of French tax returns for non-residents and residents.

Deadlines for the 2017 annual French tax returns- Declaration d´Impôts sur les Revenus

 

The 2017 deadlines have just been released:

Online filing- system open 12th April

Residents  
 
Départments 01-19: 23rd May
Départments 20-49: 30th May
Départments 50-:       6th June
Non-residents:           6th June
Manual returns
17th May
As always, the time period between the release of the manual returns in early May (which if the same as previous years will be in uneditable PDF format) and the filing deadline is ridiculously small. One can understand why the Tax Office wishes to discourage taxpayers from manual filing by making the process more difficult, however for first-time declarers there is no other option !
For further information on our filing services for these tax returns, please visit our website.

2017 French income tax returns for the tax year 2016

Another year has gone by and we are preparing for the high season for the annual tax returns which, thanks to an increase in traffic from our new website www.franceaccountants.com which is both mobile- and tablet- friendly, will be our busiest to date.

We are waiting on the Tax Office to release the precise filing deadlines for 2017. They usually do so around March time. For now we will work on the assumption that the deadlines will be similar to last year, as follows, and we will update this blog when the exact dates are published.

The online filing service will open in mid-April.

Non-residents

7th June 2017

Residents

Départments 01-19:  24th May 2017

Départments 20-49:  31st May 2017

Départments 50-974: 7th June 2017

The filing deadline for the manual returns for residents and non-residents is 18th May 2017, which as in previous years does not allow much time for preparation, given that the forms are not released until late April/ early May!  We would therefore urge all new clients who are filing their first tax return in France, and therefore need to file manually, to contact us as soon as possible so we can schedule the preparation of your returns in time.

For further information and assistance, please visit our website.

2017 income tax rates in France, for income earned in the year 2016

The French tax rates for the year 2017 have now been published. There are no major changes, with the new tax bands as follows.

Up to 9,710 Euros : 0%                                                                                                                                 From 9,710 to 26,818 Euros : 14%                                                                                                           From 26,818 to 71,898 Euros: 30%                                                                                                           From 71,898 à 152,260: 41%                                                                                                                    Above 152,260 Euros: 45%

You can also find the up-to-date tax rates and allowances on our website at http://www.franceaccountants.com/tax.html .

In April the Tax Office system will open for the online filing of the 2015 income tax returns (Declaration des Revenus). They have not yet released the exact dates of commencement and deadlines. We are working on the basis that these will be the same as last year and re-published these on our website at http://www.franceaccountants.com/2017frenchtax.html . We will update this when the exact dates are published by March.

For further information and assistance with your French tax returns, please visit our website www.franceaccountants.com .

Registration of foreign companies for French VAT

If your company is already registered elsewhere in the EU and requires to register for VAT in France, including obtaining an EU Intracommunity  number, the process is reasonably straightforward compared to other EU countries such as Spain.

French VAT registration is effected via the department of the Tax Office that deals with foreign companies, la Service des Impòts des Entreprises Etrangêres. Applications are made by post and processing times are generally quite quick, as little as two weeks.

Once the French VAT application has been accepted, a French tax code (SIRET) and Intracommunity VAT number is issued, with a notice sent out which explains how to file VAT returns. The frequency of presentation depends on the expected volume of operations in France of your company.

For further information and assistance, please visit our website www.franceaccountants.com or contact us by e-mail at info@franceaccountants.com .

 

Social Charges- Revenge of the Sith

Our clients are now receiving their 2016 tax assessments (Avis d´Impôt) for the tax year 2015 and these unfortunately confirm what we had expected from the communications issued by the French Tax Authorities- that Social Charges (known as Contributions Sociales or Prélèvements Sociaux) remain in place for rental profits by non-residents.

The tax rate is 15.5% as previously and the name and treatment of the tax on the assessments received is also unchanged, even though the pretext given by the authorities for going against European Law and the De Ruyter ruling is that the money received will not go into the mainstream Social Security system.

If this is indeed a legitimate loophole then it is up to the European Union to close it. We have an unfair situation where EU residents with a property in France are paying social contributions/ national insurance in both their home countries and France. With, of course, with no right to an increment in their pension rights.

Will their be a New Hope ? Not soon, it would seem.

 

 

 

French tax- the forms explained

 

Here´s a brief overview of the various tax forms in France. For further information and assistance with the preparation and filing of French tax returns, please visit our website.

If you are non-resident, with a property in France from which you receive rental income, you are obliged to submit annual French tax returns, regardless of whether you make a profit or loss on the rentals. The general returns to submit are 2042 and 2044. For special tax regimes, such as MicroBIC which can save you tax if you rent out furnished holiday accommodation and your expenditure is less than 50% of the income that you receive, an additional Form, 2042C, must be submitted.

If you have registered your property rental activity formally then you will need to submit Forms 2031 and 2033. If this is through a French property holding company, SCI, then the additional return to complete is Form 2072. If it is through a non-French company then you should use Form 2065. Note that the Tax Office has introduced obligatory online filing and, in general, 2016 is the last year when the forms can be filed manually before penalties are introduced for non-compliance.

If you are resident in France, the forms to submit are 2042 and 2042C.  If you receive income from any sources outside France, you should also file Form 2047.  In addition, there is a disclosure for bank accounts outside France in Form 3916.

If you live in France but work in Switzerland, i.e. a frontalier worker then there is an additional Form, 2047 Suisse, which is used to calculate where and how your income should be disclosed in the main tax return.

For further information and assistance with the preparation and filing of French tax returns, please visit our website.

 

 

2015-16 French tax returns- the Tax Office has released the filing dates.

 

The Tax Office has just release the filing deadlines for the income tax returns for the tax year 2015 (Déclaration des Revenus), as follows. For further details on our services for the preparation and filing of the returns, please visit our website .

The online filing service will open on 13th April. The online filing deadlines are a little tighter this year and are as follows:

Non-residents:   7th June 2016

Residents

Départments 01-19:  24th May 2016

Départments 20-49:  31st May 2016

Départments 50-974: 7th June 2016

The filing deadline for the manual returns for residents and non-residents is 18th May 2016, which as in previous years does not allow much time for preparation, given that the forms are not released until late April/ early May!  We would therefore urge all new clients who are filing their first tax return in France, and therefore need to file manually, to contact us as soon as possible so we can schedule the preparation of your returns in time.

For further information and assistance, please visit our website.

 

 

 

 

 

2015-16 French tax return release dates- update

 

Here´s an update direct from the French goevernment public information website https://www.service-public.fr/particuliers/vosdroits/F359 :

The online filing system will open “during April”, without being specific on the exact date.

The manual returns will be released at the end of April / beginning of May. This is particularly inconvenient for non-resident owners of French property declaring for the first time, for whom the filing deadline is 19th May ! It doesn´t give them much time at all. The good news is that, at least up until now, there have been no penalties payable for returns filed a little late.

Please visit our website for further information and assistance.

 

 

The Empire Strikes Back- Social Charges to be reintroduced for non-residents !

 

This is not going to be welcome news for non-resident owners of French property who have rental income, or more specifically those who make a profit.  Social Charges,  which are known as Contributions Sociales or Prélèvements Sociaux, are to be reintroduced for the tax year 2015 onwards.

Social Charges, which currently amount to 15,5% of taxable income, were introduced for rental income by non-residents from the tax year 2012 onwards. After a ruling by the European Court of Justice in February 2015 that these charges were illegal because they were Social Security contributions applied to people who would be gaining no benefit from the French Social Security system, the French goverment was  passed a law in July 2015 withdrawing these charges for non-residents and accepting applications for the amounts paid for the years 2012 and 2013 to be refunded.

However, in the Finance Law passed on 1st January 2016, Social Charges are being introduced, supposedly “in agreement with the European Commission” . The French government is claiming that this is legal because the contributions will go towards the general government budget and not specifically towards Social Security. Here is an excerpt from some recent communication that we have had from the Tax Office:

“A noter que l’application des prélèvements sociaux sur les revenus 2015 pour les non résidents est reconduite. Conformément à la loi de finance du 01/01/2016 et en accord avec la commission européenne, l’application des prélèvements sociaux est maintenue pour les non résidents mais financera le budget global de l’État et non la sécurité sociale. “

Whether this will be challenged again in the European Court of Justice waits to be seen, but whatever happens it will be a long process. In the meantime, those renting out their property in France will be faced again with a total tax payable of 35.5% of any profits they make.

Not happy reading.

 

 

2016 income tax rates in France and preparing for the 2015 tax returns

The French tax rates for the year 2016 have now been published. As far as the calculation of income tax  goes, There are no major changes, with tax bands and allowances increased by a small amount.

You can find the up-to-date tax rates and allowances on our website at http://www.franceaccountants.com/tax.html .

In April the Tax Office system will open for the online filing of the 2015 income tax returns (Declaration des Revenus). They have not yet released the exact dates of commencement and deadlines. We are working on the basis that these will be the same as last year and re-published these on our website at http://www.franceaccountants.com/2016frenchtax.html . We will update this when the exact dates are published by March.

For further information and assistance with your French tax returns, please visit our website www.franceaccountants.com .