This is this time of the year again, one that no one likes but that every adult has to go through…the annual tax return… Being an expat in France, it makes the 2020 French tax return even more challenging!
I’m no tax expert. Only a professional tax advisor and the tax offices can provide adequate tax advice. They can, for example, advice on the specific expatriate tax regime. But I can give you some tips as I had to go through the same situation when I repatriated back to France, in addition to my 10-years professional global mobility experience.
These pieces of advice do not replace the comprehensive support you would get from a tax advisor, but I hope it can clarify some essential and general elements.
How to fill your 2020 French tax return?
If you haven’t requested a tax identification number yet, you will need to do this first tax return on paper forms for 2020.
Your tax ID number will be provided to you on the tax notice you will receive. You will, therefore, be able to create your online tax account for the following tax return as follow:
[Via this link > Click on Particulers > L’accès à votre espace particulier > Je n’ai pas de numéro fiscal > Accéder au formulaire]
None France tax-resident
> Fill out form 2042: Main tax return form (for tax resident and none-tax resident)
> Form 2042: Main tax return form (for tax resident and none-tax resident)
> Fill out form 2047 (in the déclaration annexe tab for online declaration): to declare income that was banked abroad by a France tax resident. All types of income should be included, even though it may not be taxable in France.
> Fill out form 3916 (in the déclaration annexe tab for online declaration): to declare a foreign bank account
At the bottom of your payslip, you will find the taxable amount. Your last payslip of the year (December or your last month in the company) will summarize the total taxable amount.
This is the amount you should declare. If you had multiple employers, you should add up the annual taxable amounts.
If you are a French tax resident, you should also declare your foreign incomes. If there is a bilateral agreement, it will specify the conditions to avoid double taxation.
Only the foreign incomes earned after your arrival date in France should be declared.
INSIDER TIP: As of 2020, tax paper forms are not sent out anymore. Use the above-provided form links to get the form online or make your online 2020 tax return if you have already been provided with your tax ID number.
And finally, send it to your closest tax office!
Bilateral double taxation agreements
If there is a tax treaty between France and your previous country of tax residence, it may be at your advantage to make sure this is applied by the French tax office.
You can check the bilateral tax convention that France has signed with other countries. You will also be able to find it on the tax office website of your previous country of residence in the other language for a better understanding.
If you need further advice, you can contact the French tax office or a tax advisor. When you have determined that you want the tax bilateral agreement applied to your situation, you should send a request to the French tax office as follow:
- Prepare a letter request. I have prepared for you a letter template.
- Attach a copy of the tax treaty in question
- Provide proof of employment in France (work contract+work permit if applicable)
IMPORTANT NOTE: If a tax exemption applies to your personal situation according to the tax bilateral agreement and that the exemption duration is shorter than your residence duration in France, the exemption will not apply.
The concept of tax residence
When meeting at least one of the three following criteria, you will be tax resident in France:
- Your household (spouse, civil partner and children) is located in France
- Your main economics interests are in France (location of principal investments, registered business, or location where you earn the major part of your incomes)
- Your professional activity (employer or not) is carried out in France (excluding subsidiary activities)
>> None-tax resident in France: File a tax return including your French incomes only.
>> Tax resident in France: File a full tax return including your French AND foreign-based incomes
How to personalize your tax withholding rate
If you are employed in France, a ‘neutral’ tax withholding rate has been applied from your first payroll. This rate is the highest one that usually applies to single individuals.
You can request a personalized rate to avoid overpayment that will only be reimbursed at the end of the tax year:
- Fill out the form 2043-SD
- Provide a passport copy for each family member
- A copy of visa for each family member (if applicable)
- A copy of your marriage certificate (if applicable)
- And a copy of children’s birth certificate (if applicable)
You and your employer will be provided with your personalized rate within a few weeks. Your employer will, therefore, apply it to the following payroll.
Online 2020 tax return deadline
France is divided into three zones based on the department of residence:
• Zone 1 departments n° 01 to 19 as well as none tax residents: 4th June 2020;
• Zone 2: departments n° 20 to 54 and Corsica: 8th June 2020;
• Zone 3: departments n° 55 to 974/976: 11th June 2020.
Paper 2020 tax return (first tax return in France)
Before 12 June at midnight
The tax notice is sent in September, as a welcome back from holiday present!
If it is your first tax return in France, you will find your tax ID number that will allow you to create your online account for the future tax declaration and payments.
INSIDER TIP: Keep your tax notice as it can be requested by other administration for proof of income.
I hope you found this information helpful. I would be happy to receive your feedback in the below comments.