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Discussion Starter #1
Hi all,

So I hope I'm not rehashing a question that has already been asked (I've searched the forums and haven't found anything). Anyway I would be very greatful if I could get your advice.

I know that income tax (not social security contributions) are paid in arrears. And that income tax declarations are largely up to the employee. What is the procedure for someone who works in France for one year and then returns (to another EU country) before her income taxes are due?

I would imagine there is a mechanism for declaring in advance of leaving? If so I'd like hear about it. Also (just out of interest ;)) what would the implications of not declaring and simply returning home be?

Thanks for your help with this completely hypothetical scenario :),

Dan
 

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Wow, that's a darned good question!

AFAIK there isn't really a mechanism for declaring in advance. The declaration forms aren't generally available until March or April. You could, I suppose, buy one of those computer tax form programs (Click Impot is the one I'm familiar with, but I'm sure it's not the only one). They normally put out the final version (that you can use to file with) some time in March.

The implications of just up and leaving would probably depend quite a bit on how much you owe and if you were to wind up resident in France again.
Cheers,
Bev
 

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Hi,
You are required to submit a declaration for all income received while in France , up to the date of your departure . This should be submitted to the tax office to which you were subject during your residence in France. You should use the normal form 2042 (and 2047, if appropriate).
You are required to submit the declaration by the end of the June following the end of the tax year of departure.(You can download the forms from Vos impots sur www.impots.gouv.fr, le site de l'administration fiscale. Un site du ministère de l'Economie des finances et de l'industrie., when they are available--from April onwards)
If you receive income from France after your departure there is a special form 2042NR to declare this .
You should bear in mind that there are mutual assistance agreements in existence between european tax authorities and they can collect taxes and persue defaulters on each others behalf. Unless your tax liability is significant, this may not be a very real danger for you.
 

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Discussion Starter #4
Hi Bevdeforges/parsnips,

Many thanks for your replies. Definately food for thought.

I also have a related question. If you work in France for twelve months, and lets say the first 6 months are July-Dec 2007 fiscal year and the second are Jan-Jun 2008, do you get your first €5,852 as tax free twice, second 6k at 5.5% twice etc.?

Or can they factor in income made in another EU country for the first half of 2007 and second half of 2008?

If not, it would seem like the opposite of double taxation. I think :confused2:

Thanks,

Dan
 

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Hi Bevdeforges/parsnips,

Many thanks for your replies. Definately food for thought.

I also have a related question. If you work in France for twelve months, and lets say the first 6 months are July-Dec 2007 fiscal year and the second are Jan-Jun 2008, do you get your first €5,852 as tax free twice, second 6k at 5.5% twice etc.?

Or can they factor in income made in another EU country for the first half of 2007 and second half of 2008?

If not, it would seem like the opposite of double taxation. I think :confused2:

Thanks,

Dan

Hi,
You do get the full years "allowances" each year, and usually that is that, but I believe that the french tax people can require that you declare foreign earnings (and tax paid )for the foreign - resident part of the year --this is NOT taxed as such, but is added to your french income to calculate a "notional" tax rate (the "taux effectif"), which is then applied to your french taxable income only.
Normally this is only done when you receive foreign taxed income while french resident , but as I say, technically ,I think they could apply it in a year of arrival or departure although as a rule they regard you as taxable only from and up to your day of departure.
 

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If you're consider "resident" in France for tax purposes, you have to declare your worldwide income. So, the answer is that yes, you do have to declare what you made those other six months in each year. There's a separate form for detailing your foreign income - source and whether or not you are taxable to the other country on it - and that's how the tax inspector swammies up your ultimate bill for the year - but the first calculation is based on your total worldwide income for the calendar year. You then get credit for taxes paid to other jurisdictions.
Cheers,
Bev
 

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Discussion Starter #7
Whoa ! many thanks to you both for your quick replies.

Just for carification though - the French fiscal/taxation year is the same as the calander year right?
 
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