![]() Since this tax regime is complex, we would recommend that you seek professional advice before claiming the benefits of this provision on your French income tax return. This legislation cannot be combined with the regime available to French outbounds. The employee will be able to keep the benefit of the inbound regime even in case of mobility with the company or intra group (but still within the eight or five maximum years). The availability of this inbound regime is limited to eight years from the year of arrival (five years for taxpayers who have taken up a position in France before 6 July 2016). Alternatively, the individual can elect for an exemption of French tax on the actual salary supplements and the remuneration related to foreign workdays, limited to 20% of the taxable remuneration. on salary supplements, actual or not, and foreign workdays) is limited to 50% of the total remuneration. ![]() It also provides for an exemption for the part of the remuneration related to foreign workdays. the taxable compensation cannot be lower than the taxable remuneration paid for a similar job in the same or a similar company established in France). The regime still provides for a 'floor' of reportable compensation (i.e. a flat rate exemption of 30% of the total remuneration.exemption of the actual amount of salary supplements received, or.Under this regime, individuals assigned to France by their foreign employer can benefit from a French income tax exemption in relation to salary supplements connected with their transfer.įor employees directly recruited abroad, and for employees transferred to France by their foreign employer who have taken up their position as of 16 November 2018, the regime offers the following options: In addition, the individuals need to fulfil specific residence/domicile conditions. In both cases, the individuals must not have been French tax resident during five calendar years preceding the year of beginning of their functions in France. The inbound assignee regime applies to employees assigned to France by their foreign employer or to employees directly recruited abroad by a French company as of 1 January 2008. ![]() Inbound assignee regime (Article 155 B of the French tax code) However, these revenues remain subject to a solidarity levy at a rate of 7.5%. The persons affiliated to a compulsory social security scheme, other than French, within a country of the European Economic Area (EEA) (European Union, Iceland, Norway, Liechtenstein) or Switzerland are exempt from CSG and CRDS on their investment income. Type of incomeĬontribution au Remboursement de la Dette Sociale (CRDS) The total social surcharges on employment income, rental income, interest, dividends, and capital gains for 2022 are shown below. Social surcharges are applicable to various kinds of income. PIT rates are those applicable to 2021 annual income. * Note that social contribution rates are the average rates applicable to 2022 remuneration. Rates are progressive from 0% to 45%, plus a surtax of 3% on the portion of income that exceeds 250,000 euros (EUR) for a single person and EUR 500,000 for a married couple and of 4% for income that exceeds EUR 500,000 for a single person and EUR 1 million for a married couple. Figures vary for married taxpayers and for single and divorced taxpayers with dependent children. However, the tax saved from income splitting is limited depending on the net taxable income of the tax household. Thus, the income of a married taxpayer with three children is split into four. Under income-splitting rules, total taxable income is divided by the number of shares awarded to the taxpayer: one share for a single person, two shares for a married taxpayer without children, half a share for each of the first two dependent children, and one full share for the third and each subsequent child. 'the more children you have, the less tax you pay’). ![]() Total income is split according to family status (i.e. Personal income tax ratesĮach category of income is combined and, after deduction of allowances, is taxed at progressive rates. ![]() Individuals who are not domiciled in France (non-residents) are subject to tax only on their income arising in France or, in certain cases, on imputed income. Individuals, whether French or foreign nationals, who have their tax domicile in France are generally subject to personal income tax (PIT) on worldwide income unless excluded by a tax treaty. ![]()
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