Another tax/social security question - Paris

[abgilliam]

We are considering a job offer in paris, but are having trouble estimating what our take home pay will be, and would appreciate any advice.

We are UK citizens, married, with 2 chldren, and would be in the top tax bracket. What do we plan on having deducted, either as a total percentage, or broken down into income tax, social security, etc.

Thanks,
ang

[Bevdeforges]

As far as deductions go, there are no withholdings for income tax in France. As a rule of thumb (and this depends on the employer to some extent) figure on withholdings about about 20-25% for social insurances.

The tax situation (which they keep talking about changing) is tricky for new comers. Your first year (calendar year) you make no payments, but simply file your declaration in May of the following year. You receive your assessment around the 1st of September or so and then can elect to make quarterly or monthly payments to pay it off. Meanwhile, you make "estimated" payments on year 2 starting in January of year 3, based on what your assessment was for year 1. In September, when you get your final assessment for year 2, you settle up over the balance of the year, and then make your estimated payments for year 3 based on your year 2 actual taxes.

In other words, once you've paid up your first year's taxes, you're making estimated payments based on a one year lag. Your employer doesn't get involved at all. (But you can set things up to make your payments online once you get past your first tax year.)
Cheers,
Bev

[giantpanda]

Hi!

If you work in France, you are subject to social security and you have to make an income tax return, by the end of May of the following year, for the previous calendar year, or for the first year, from the time you started working in France. And (important ) you do not get income tax return forms, you have to fetch them at a Centre des Impôts earliest April of the coming year ( you will certainly need at least forms 2042/2047/3916)

Old forms ( there are usually little changes ) to get the feel of these, can be downloaded on internet:

http://www.impots.gouv.fr/portal/dgi....jsp.1_A&_DAV=

Now what has not not been written, this is implies that you declare your " world income " ( and if it is the case, also the taxes paid elsewhere ).

Therefore you total earning determine the rate ( percentage ) of the taxation of your French income.

For the deductions made at the level of the employer, see here, and enter your earnings ( over the hourly rate. NB. This is not exact because there are branch variations, but it gives you a good idea of what you will be getting ( or course you can ask the employer to give you an effective simulation.

Simulation paie - calcul paie, gestion de paie - fiche paie - externalisation paie : bulletin de paye expliqué

Yours,

giantpanda