With tax declarations due in the UK at the end of January, what is the system in France?Residents of France:
As residents of France, you are obliged to declare all of your worldwide income and capital gains for tax in France. The tax year is the calendar year and there is no PAYE in France, so all income must be included in your annual tax return.The tax declaration for 2011 income is to be submitted by the end of May 2012. Those making their first declaration will have to obtain the forms from their local tax office.All income declared will be subject to income tax (“impôt sur le revenu”) and “social taxes” (“contributions sociales”). The latter is an extra tax on most sources of income, which is used to finance the health and other services, and is a set percentage of what you declare.On the other hand, income tax is on a banded system and involves a complicated calculation. This is because different allowances are given for different types of income. For instance, pension income is only taxed on 90% of its value, up to certain limits. Unlike the UK, you are taxed as a “household”, rather than as individuals, with each member of the “household” considered to earn part of the income, irrespective of its origin.To read more about: How many declarations to make, What to declare?, What exchange rate to use? - then go to Understanding Income Tax in France
As residents of France, you are obliged to declare all of your worldwide income and capital gains for tax in France. The tax year is the calendar year and there is no PAYE in France, so all income must be included in your annual tax return.The tax declaration for 2011 income is to be submitted by the end of May 2012. Those making their first declaration will have to obtain the forms from their local tax office.All income declared will be subject to income tax (“impôt sur le revenu”) and “social taxes” (“contributions sociales”). The latter is an extra tax on most sources of income, which is used to finance the health and other services, and is a set percentage of what you declare.On the other hand, income tax is on a banded system and involves a complicated calculation. This is because different allowances are given for different types of income. For instance, pension income is only taxed on 90% of its value, up to certain limits. Unlike the UK, you are taxed as a “household”, rather than as individuals, with each member of the “household” considered to earn part of the income, irrespective of its origin.To read more about: How many declarations to make, What to declare?, What exchange rate to use? - then go to Understanding Income Tax in France
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