CDD contract termination and tax - urgent question

jont1998 · #1 (**permalink**) 5th July 2012, 08:52 PM

I am a cadre with a 3 year CDD contract that was terminated. Are there a social contribution taxes due on the amount negotiated as compensation for the termination of the contract?

Clic Clac · #2 (**permalink**) 6th July 2012, 07:33 PM

Sorry, I can't help - but I am interested in hearing the answer....

Bevdeforges · #3 (**permalink**) 6th July 2012, 07:59 PM

There is normally a tax break of some sort on termination payments, though I'm not entirely sure how those work.

On your US tax return, however, there is NO break for termination payments - other than the foreign tax credit - so if you don't pay income taxes to France, you do pay them to the US.
Cheers,
Bev