Moving Away To France? You Need French Tax Advice
Somebody once said that change is the only constant
. However, despite knowing this not many of us are very comfortable with change and when that change happens to be associated with movement to a different country, we have reasons to be apprehensive about it, notwithstanding the excitement that would also accompany this change.
This apprehension is not restricted just to the physical environment but extends to other facets of daily life, such as getting used to the people, the culture, the ability to adjust to unfamiliar surroundings quickly and more importantly, the financial implications in terms of the taxes that you would now be liable to pay as a citizen of this country.
So if you are being asked to move to France, then you need to quickly understand and appreciate the adjustments you would have to make and the first thing you do is to get some good French tax advice from a competent authority so that you can make an early start in managing your finances appropriately.
The French follow the calendar year for filing tax returns and since you would now be a French citizen, you would be liable to pay taxes as per their tax structure on all your global income - and this includes gains made on any assets as well. Non residents, however, are only required to pay taxes on gains from income sourced in France only.
You must make sure that you introduce yourself to the tax authorities upon your arrival in France and though you need not register to pay tax, you have to ensure that you do not default on your tax returns. In France, the tax is paid as arrears and that means you pay after your earn the income in full without any tax deduction at source if you are a salaried person. It is therefore mandatory for you to set aside money every month in order to be able to pay your taxes on time and in full.
Normally for residents of France, the government permits you to pay income tax by way of installments every month or you can also pay them through three installments of equal amounts. Under the latter arrangement you have to pay on the 15th of February and May, and the amounts have to be at least a third of the tax you have already paid the previous year. The last installment would be decided after the assessment is done by the 15th of September. However, in your case, since this would be the first year of residentship, this payment schedule would not be applicable and you would have to make your tax payment only the next year.
There are other aspects of taxation pertaining to capital gains, wealth tax, and social charge and so on. You can get authentic information and accurate French tax advice only from taxation experts and need to get in touch with them. This will ensure that your movement into this country is a smooth one and you at least do not have to bother much about the management of your finances.
by: Lawrence White
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