IR: MAINTENANCE OF 20% FOR THE LOWEST INCOMES

EXPATRIATE TAX, MAINTAINED AT 20% FOR THE LOWEST INCOMES

On Friday December 14, the French National Assembly adopted. An amendment aimed at limiting the impact of the income tax increase for French nationals living outside France. For the opposition, however, the new tax system remains unfavorable to French expatriates.

New twist in the Finance Bill 2019. The LREM deputies of the French abroad have proposed and passed a cap on the increase of the Income Tax. Lncome of less than €27,700 from French sources will remain subject to the 20% levy.

Last October, the Government announced " a series of measures to overhaul taxation of French nationals abroad ". With the aim of " simpler, fairer taxation for expatriates ". The National Assembly had therefore adopted, on the proposal of the government. A non-liberal withholding tax calculated by applying the rate grid. By default used for the withholding tax on the income of residents. In doing so, the minimum tax rate applicable to the French source income of French nationals living abroad was raised from 20% to 30%. 

In parallel, the CSG-CRDS was abolished only for non-residents established within the European Union. A "double penalty" for our compatriots living outside Europe, who not only had to continue paying the CSG of 17% on their property income. But they also saw their income tax increase by 50% without any compensation..