Since this Wednesday 10th April, the online filing system at www.impots.gouv.fr for the filing of the annual personal income tax returns for the tax year 2018 has been open. For the clients that we have filed so far, it seems to be running smoothly and without any technical problems. The filing system is almost identical to last year´s. Well done to the French tax administration for another year well prepared !
Tax year 2018, to be declared in 2019
The provisional presentation deadlines, to be confirmed by the Tax Office by early April, are as follows:
Manual returns: 16th May.
Returns filed by internet: 21st May
For manual returns, the deadline is 16th May. An extension is given for returns filed by internet, as follows:
21st May: Départements 01 to 19;
28th May: Départements 20 to 49;
4th June: Départements 50 to 974.
Please contact us at email@example.com for further information. You will also find further useful tax information on our website and this Blog.
Increase in fixed tax rate
For non-residents with French income, for instance rental income, the fixed rate of 20% remains for income up to 27,519 Euros. However above this amount, the tax rate has increased to 30%. Given the numbers involved, this change is unlikely to affect many single property owners.
Reduction in French Social Security payable by EU residents with French rental income.
It´s been an ongoing battle in the EU Courts for the last several years. It should be illegal, the European Court of Justice has ruled that it is illegal, yet France continues to force residents of EU countries with French rental income to pay French Social Security. The better news is that the rate for EU residents has just been reduced to 7.5%.
Residents of non-EU countries will be required to pay Social Security of 17,2%, paid into a system from which they do not receive any benefit at all !
French Income and Wealth Tax returns
Tax year 1st January – 31st December 2017
Income Tax (Impôt sur le Revenu)
Both residents of France and non-residents with French property or income are obliged to submit an annual income tax return.
The French tax year is equal to the calendar year. The presentation deadlines are as follows:
Manual returns: 17th May.
Returns filed by internet: 22nd May.
Our charge for the preparation and submission of the returns for a single property, is 145 Euros plus VAT. For manual filing, an additional 10 Euros is added to cover postal charges.
For manual returns, the deadline is 18th May. An extension is given for returns filed by internet, as follows:
22nd May: Départements 01 to 19;
29th May: Départements 20 to 49; 5th June: Départements 50 to 974.
Our charges before VAT are 185 Euros for a single return, and 240 Euros for a family return. For manual filing, an additional 10 Euros is added to cover postal charges.
If you would like us to prepare and file your tax returns, please complete our attached tax questionnaire and return to us by e-mail.
The questionnaire for non-residents is in PDF format, which can be opened and edited in Adobe Reader.
For residents, the questionnaire is in spreadsheet format. If you do not have Excel, there are very good free equivalents available such as Open Office- download at https://www.openoffice.org/download/ .
Returns can be submitted from the following dates:
Online filing: 10th April
Manual filing: The returns should be released in the first week of May.
After we file your Tax Return, the Tax Office will calculate the tax due and send you a payment notice, avis d’imposition. The date of issue is by late September. In the event that tax is payable the payment notice will include a payment slip for you send to the Tax Office along with a cheque. Online payment options and direct debit are also available.
Wealth Tax (Impôt de solidarité sur la fortune)
Residents of France are subject to Wealth Tax on their worldwide net assets, although there are now exemptions available for the first five years of residence, please contact us for details.
Non-residents only pay Wealth Tax on their French net assets.
Eligible assets include property; cash in deposit accounts and other financial investments. Business assets are generally exempt.
You need to declare if your taxable net assets are over € 1,300,000. The deadlines are the same as for income tax returns.
Wealth Tax is now declared as part of the income tax declaration (2042C). Our charges to include Wealth Tax in your return will depend on the amount of work involved, please contact us for a quotation.
The 2017 deadlines have just been released:
Online filing- system open 12th April
Départments 01-19: 23rd May
Départments 20-49: 30th May
Départments 50-: 6th June
Non-residents: 6th June
Manual returns 17th May.
As always, the time period between the release of the manual returns in early May (which if the same as previous years will be in uneditable PDF format) and the filing deadline is ridiculously small. One can understand why the Tax Office wishes to discourage taxpayers from manual filing by making the process more difficult, however for first-time declarers there is no other option !For further information on our filing services for these tax returns, please visit our website.
Another year has gone by and we are preparing for the high season for the annual tax returns which, thanks to an increase in traffic from our new website www.franceaccountants.com which is both mobile- and tablet- friendly, will be our busiest to date.
We are waiting on the Tax Office to release the precise filing deadlines for 2017. They usually do so around March time. For now we will work on the assumption that the deadlines will be similar to last year, as follows, and we will update this blog when the exact dates are published.
The online filing service will open in mid-April.
7th June 2017
Départments 01-19: 24th May 2017
Départments 20-49: 31st May 2017
Départments 50-974: 7th June 2017
The filing deadline for the manual returns for residents and non-residents is 18th May 2017, which as in previous years does not allow much time for preparation, given that the forms are not released until late April/ early May! We would therefore urge all new clients who are filing their first tax return in France, and therefore need to file manually, to contact us as soon as possible so we can schedule the preparation of your returns in time.
For further information and assistance, please visit our website.
If your company is already registered elsewhere in the EU and requires to register for VAT in France, including obtaining an EU Intracommunity number, the process is reasonably straightforward compared to other EU countries such as Spain.
French VAT registration is effected via the department of the Tax Office that deals with foreign companies, la Service des Impòts des Entreprises Etrangêres. Applications are made by post and processing times are generally quite quick, as little as two weeks.
Once the French VAT application has been accepted, a French tax code (SIRET) and Intracommunity VAT number is issued, with a notice sent out which explains how to file VAT returns. The frequency of presentation depends on the expected volume of operations in France of your company.
The French tax rates for the year 2017 have now been published. There are no major changes, with the new tax bands as follows.
Up to 9,710 Euros : 0% From 9,710 to 26,818 Euros : 14% From 26,818 to 71,898 Euros: 30% From 71,898 à 152,260: 41% Above 152,260 Euros: 45%
You can also find the up-to-date tax rates and allowances on our website at http://www.franceaccountants.com/tax.html .
In April the Tax Office system will open for the online filing of the 2015 income tax returns (Declaration des Revenus). They have not yet released the exact dates of commencement and deadlines. We are working on the basis that these will be the same as last year and re-published these on our website at https://www.franceaccountants.com. We will update this when the exact dates are published by March.
For further information and assistance with your French tax returns, please visit our website www.franceaccountants.com .
Our clients are now receiving their 2016 tax assessments (Avis d´Impôt) for the tax year 2015 and these unfortunately confirm what we had expected from the communications issued by the French Tax Authorities- that Social Charges (known as Contributions Sociales or Prélèvements Sociaux) remain in place for rental profits by non-residents.
The tax rate is 15.5% as previously and the name and treatment of the tax on the assessments received is also unchanged, even though the pretext given by the authorities for going against European Law and the De Ruyter ruling is that the money received will not go into the mainstream Social Security system.
If this is indeed a legitimate loophole then it is up to the European Union to close it. We have an unfair situation where EU residents with a property in France are paying social contributions/ national insurance in both their home countries and France. With, of course, with no right to an increment in their pension rights.
Will their be a New Hope ? Not soon, it would seem.
The Tax Office has just release the filing deadlines for the income tax returns for the tax year 2015 (Déclaration des Revenus), as follows. For further details on our services for the preparation and filing of the returns, please visit our website .
The online filing service will open on 13th April. The online filing deadlines are a little tighter this year and are as follows:
Non-residents: 7th June 2016
Départments 01-19: 24th May 2016
Départments 20-49: 31st May 2016
Départments 50-974: 7th June 2016
The filing deadline for the manual returns for residents and non-residents is 18th May 2016, which as in previous years does not allow much time for preparation, given that the forms are not released until late April/ early May! We would therefore urge all new clients who are filing their first tax return in France, and therefore need to file manually, to contact us as soon as possible so we can schedule the preparation of your returns in time.
For further information and assistance, please visit our website.