NON-FRENCH RESIDENT ALL ABOUT THE ELECTRONIC DECLARATION
Remote filing of your French source income has become mandatory. The deadline for your return is May 21, 2019.
If you receive income from French sources that is taxable in France under an international tax treaty, you must file a return by May 21 at the latest. As you are also aware, in 2019, online filing became mandatory for all users whose primary residence is equipped with, first and foremost, Internet access. Only users who do not have such access are exempt from this requirement.
There are two possible methods of taxation:
- the application of a minimum tax rate
- the application of the average tax rate.
Minimum rate
Your tax is calculated in the same way, using the progressive tax scale and the capped family quotient, just as it is for residents of France.
However, you will be subject to a minimum tax rate of 20% or 14.4% on net taxable income up to 27,519 €. Above that amount, the minimum tax rate applicable to income from French sources earned by French citizens living abroad has increased to 30% (20% for the French overseas departments).
Average Rate
If you can demonstrate that the average French tax rate on the’all of your income from French and foreign sources is lower than the minimum rate. You may be taxed at the average rate on your income from French sources only.
To be eligible. You must also report your worldwide income (income from French and foreign sources) in box 8 TM of Form 2042. In the «Additional Information» section, specify the type of income received (property income, wages, etc.) and the respective amounts.
Tax Deduction for Non-Residents of France
The Deduction of child support payments for non french resident is also acceptable. For the calculation of the average tax rate on income received in 2018 and reported in 2019. Provided that the pensions paid are also taxable in France in the hands of the recipient and that they have not already resulted in a tax benefit for the taxpayer paying them in their country of residence.
You can also request that the average rate be applied. As part of a disputed claim addressed to the Nonresident Individual Tax Department.
In that case, you will first need to provide a certified true copy of the tax assessment notice issued by the tax authority in your state of residence. As well as a copy of the tax return filed in that country for the income of all members of your tax household. These documents must also be certified as true copies and accompanied by a certificate from the foreign tax authority confirming that they have been taken into account for tax purposes.
If your tax residence is located in a Member State of the European Union or in a country with which France has signed an agreement on administrative assistance to combat tax fraud and tax evasion or an agreement on mutual assistance in tax collection, you may, pending the submission of supporting documents, include with your tax return a sworn statement attesting to the accuracy of the information provided in order to be taxed at the average rate.
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