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French and expatriate taxation: what to do at the start

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Under French law (Article 4B of the General Tax Code) are considered domiciled in France for tax individuals, whatever their nationality, who in France: 1. instead of their home available permanen you, 2. their usual place of residence (at least 183 days / year) 3. their main occupation 4. the center of vital interests (economic, family ...). 5. the decision of the competent authorities (based s ur nationality, etc.). France has signed numerous tax treaties to avoid double taxation. Property income is usually taxed in the country where they are located. Actions they are taxed in the country home (in France there is a withholding tax of 5% offset by a tax credit). Securities gains are also taxed in the country of residence, unless more than 25% of the company (which one holds more than 25%) is ce die. There is no convention for donations.

What you need to do before you transfer your tax domicile abroad

You will or have already left France. You're not as much ispensé any obligation to the French tax authorities. During the transfer of tax residence abroad, you must complete a number of formalities.

1. Obtain a tax clearance certificate (optional)

Until 1 janvi st 2005, obtaining a discharge from the French tax authorities was required during the transfer of residence abroad (unless you keep a residence in France). Today obtaining this tax clearance is not oblig atory. However, moving abroad leading to immediate payment of taxes due to the perception of the former home of the expatriate, it is advisable to obtain such discharge to ensure the regularity its tax status. The Finance Act 2005 has removed the immediate taxation in case of gains on substantial shareholding (ie more than 25% of the capital) and therefore you have to subscribe to declare ration of this type.

2. Report your income from the previous year

Before April 30 of the year following your departure abroad, send your tax return from the previous year to the tax (form No. 2042 ). In addition, if you continue to p ercevoir French source income after your departure, you must attach Schedule No. target = "_blank"> 2042 NR which will be charged on income per erçus only from the date of your departure until December 31.

3. The case of PEA

Since 20 March 2012 the PEA is not automatically closed when the transfer of tax residence of the holder (except if the transfer takes place in a State or NCCT). Thereafter, if the French living abroad wishes to close its PEA, or make a partial withdrawal of the plan, the net gain is exempt from tax reve Naked and social security contributions. If he decides to return to France, the rule of 5 years applies in deciding whether taxation of capital gains.

In all cases we recommend you towards a conse iller tax and / or a lawyer specializing in international taxation to determine precisely what tax will be applicable.
[13-03-2013]
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