Posted in France forum
I'm thinking about working in France but would like to know how high taxation is there to evaluate salaries. Any ideas?
French income tax
posted by Raquelle L'Orean in France forum
Found some info on this, check it out:
A person who is tax resident in France, will become liable to pay tax on their worldwide income (impot sur le revenue).
Some income, such as earnings, pensions, rental income and some other forms of investment income is taxed at progressive scale rates that range from 0 percent to a top rate of 40 percent. There is also a fixed rate of income tax of 18 percent at source on bond or bank interest and on capital gains, and by election this can be applied to interest, say, from other EU countries (see below).
Income Tax Scale Rates for 2008 tax returns based on 2007 Income
Net Income Subject to Tax Band Tax Rate Tax on Band Cumulative Tax
Up to €5,687 €5,687 Nil
€5,688 to €11,344 €5,657 5.5% €311 €311
€11,345 to €25,195 €13,851 14% €1,939 €2,250
€25,196 to €67,546 €42,351 30% €12,705 €14,955
Over €67,546 40%The taxable income to be assessed is the total income of the household. To avoid the higher rates of tax where there is a high income, but more than one household member, the family is divided into a number of parts familiales.
The total income is divided by the number of parts. The income tax scale rates are then applied to this lower figure, and having computed the income tax due, it is multiplied back up by the number of parts.
Income tax in France
posted by Emilia Gomez in France forum
Hi Liliane, maybe this helps?
What you need to know about French taxation1
Any individual, whether a French or foreign national, who is resident in France for tax purposes is subject to French income tax on his/her worldwide income. Depending on the nature of the earned income, a taxpayer with foreign source income may be liable for both French and foreign taxation on the same income. In order to avoid such double taxation, he/she can request the application of the Tax Treaty (if one has been signed between France and the other country). The result of such an application will be either the adjustment of the effective rate of income tax or the calculation of a tax credit amounting to the income tax paid outside France. In any event, remember that you have to pay your taxes ; therefore you need to save up throughout the year in order to pay when the tax return comes in.
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Territoriality and status of residence for tax purposes1
National Law
Under French law, you are resident in France for tax purposes if you meet any one of the following four conditions : Your permanent home (habitual home for you and/or your family) is in France. You spend most of your time in France (at least 183 days during a calendar year, or even less if you spend more time in France than in any other country). Your professional activity is in France (except if the professional activity is of an auxiliary nature). Your financial interests are centered in France.
Tax treaty provisions
An individual may be considered as being resident in two different countries. In this case, the tax treaty between France and the other country helps to determine the country in which the individual will be liable for income tax.