Income Tax in France: Practical Information
Introduction
Income tax is one of the main sources of revenue for the French government. It is a progressive tax, meaning that the higher your income, the higher the percentage of your income that you will pay in taxes.
Who is Liable for Income Tax in France?
All residents of France are liable to pay income tax on their worldwide income. This includes French citizens, foreign nationals who have been resident in France for more than six months, and non-residents who have income from French sources.
What Types of Income are Taxable?
The following types of income are taxable in France:
- Employment income
- Business income
- Investment income
- Rental income
- Pension income
- Capital gains
Tax Rates
The French income tax system is divided into five tax brackets. The following table shows the tax rates for each bracket:
| Tax Bracket | Taxable Income | Tax Rate | |—|—|—| | 1 | €0 – €10,084 | 0% | | 2 | €10,085 – €25,710 | 11% | | 3 | €25,711 – €73,516 | 30% | | 4 | €73,517 – €158,122 | 41% | | 5 | €158,123 and above | 45% |
Tax Allowances and Deductions
There are a number of allowances and deductions that can be claimed against your income before you calculate your tax liability. These include:
- Personal allowance
- Dependent allowance
- Employment expenses
- Retirement contributions
How to File Your Tax Return
You must file your tax return online using the French tax authorities’ website. The deadline for filing your tax return is May 15th for paper returns and June 15th for online returns.
What Happens if You Don’t File Your Tax Return?
If you do not file your tax return on time, you will be subject to penalties. These penalties can be significant, so it is important to file your tax return on time.
Conclusion
Income tax is a complex subject, but it is important to understand the basics so that you can ensure that you are paying the correct amount of tax. If you have any questions about your income tax liability, you should contact the French tax authorities for advice.
Impôt sur le revenu : informations pratiques
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