Foreign income
Do you collect income from abroad and wonder about their taxation in France?
Wages, dividends, rental income, pensions, capital gains or professional income: taxation of foreign income requires an accurate analysis of your situation and the applicable tax convention.
Error reporting can result in double taxation, tax adjustment or penalties.
Our firm accompanies you in the analysis and reporting of your foreign income.
Taxation of foreign income
The collection of income from abroad raises several tax questions:
- In which country is income taxable?
- Should income be reported in France?
- Which international tax convention is applicable?
- How to avoid double taxation?
- What tax credit should be applied?
- What tax returns must be filed?
The answer depends in particular on your tax residence, the nature of the income and the country from which it comes.
Each situation must be analysed in a specific way.
What foreign income is concerned?
Our firm is involved in the tax analysis of:
- salaries and remuneration received abroad;
- dividends from foreign companies;
- foreign financial interest and income;
- rental income from buildings located abroad;
- capital gains on real estate or foreign securities;
- foreign pensions;
- International business income;
- income from foreign companies or structures.
Income tax qualification is essential.
The same amount may be subject to different tax rules depending on its nature and the applicable tax treaty.
Application of international tax treaties
France has concluded numerous tax treaties with foreign states.
These conventions determine in particular the country with the right to tax each category of income and the mechanisms to avoid double taxation.
Depending on the situation, the Convention may provide for:
- exclusive taxation in a State;
- taxation in both states with a tax credit;
- an exemption in France with income taken into account when calculating the tax rate.
The application of a tax convention requires a precise legal reading.
It is not enough that a tax has been paid abroad to automatically exempt income in France.
Foreign income tax return
Revenues received abroad may result in specific reporting obligations in France.
Depending on your situation, you may need to file an income tax return received abroad and carry forward the amounts on your annual income tax return.
The declaratory treatment depends on:
- the country of origin of the income;
- the nature of the income;
- the applicable tax convention;
- the mechanism for eliminating double taxation.
An error in the choice of forms or in the calculation of the tax credit may result in incorrect taxation.
Our support
Our firm analyses your tax situation and secures the processing of your foreign income.
Our intervention includes:
- analysis of your tax residence;
- identification of income from foreign sources;
- study of the applicable tax treaty;
- the tax qualification of each income;
- the determination of the tax country;
- analysis of the mechanism for eliminating double taxation;
- identification of your reporting obligations.
Vous obtenez une analyse claire de votre situation et des règles fiscales applicables à vos revenus étrangers.
Sécurisez l’imposition de vos revenus étrangers
La fiscalité internationale ne se limite pas à déclarer un revenu perçu hors de France.
Elle nécessite d’articuler les règles fiscales françaises avec les dispositions de la convention fiscale applicable.
Notre cabinet vous accompagne afin de sécuriser votre situation fiscale et de prévenir les risques de double imposition ou de redressement.
Faites analyser vos revenus étrangers
Do you earn income abroad?
Contactez notre cabinet afin d’obtenir une analyse de votre situation fiscale et de vos obligations déclaratives.
