Quote:
Originally Posted by Steve-O
Bev, Giant Panda, Mas Jen;
thank you for the replies.
i have just come across 'foreign income exclusion'. anyone know how this works exactly? is everybody who is an expat entitled to this? My income is in USD and i have 2 children.
My company is offering 'tax equalization', but if 'foreign income exclusion' is real. i wouldnt pay any taxes....a bit confused.
thanks for all your help!
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Hi!
If youare a French fiscal resident, you will have to declare your
world income.
If you earn money elsewhere, you can also declare the taxes paid elsewhere, so that will be taken into consideration.
If you were earning 80K dollar i.e. about Euro 54,421 ( at today's rates ) - so called declarable income ( which is a little under your gross income, with 2 children under age, you would pay Euro 3075 Incme Tax.
NB. The 1st year ( or part year ) you only declare the income between date of residency and 31.12. - Since that goes into the years' table, it makes a considerable reduction. eg. If I take the revenue from 1.7. till 31.12 on the same basis, then the income tax goes down to Euro 217.
Have never heard of a " foreign income exclusion ".
NB. If you were to earn interest in USA, then things do change, since you would also be subject to CSG ( Contribution Sociale Généralisée ).
Yours,
giantpanda