Hello fellow ex-pats
I am on a permanent worker’s compensation from Australia. I pay tax on it in Australia.
The provider knows I now live in France 9 months of the year. (married to a French person)
I was told that if I declare this ‘income’ here it will be taxed again - which will leave me with a meager amount each fortnight.
However an American friend said that is not the case.
can anyone shed light on this please?
Hello fellow ex-pats
The answer will be in the France-Aus tax treaty, which will specify where each separate income source is taxed and what the arrangements are, if any, to prevent any given source of income from being taxed in both countries.
Either way, you don’t have a lot of choice in the matter. If you’re classed as resident in France then you have to declare it as part of your worldwide income, unless special provisions apply. But you can and should find out what the DTA says, to check that the French tax office is following the correct procedure.
thanks - I’m not a resident as yet - still on a carte de sejour (mariage) but I will write to the French tax office too.
will see what I find in the tax treaty
merci beaucoup Anna
If you are receiving a payment in respect of an accident or illness caused by your work , paid by the social service of your country , or by an insurance company ; or any form of compensation for health problems caused by asbestos ; the payments are exonerated and don’t have to be declared at all. Best to discuss with the french tax office taking all relevant documents , to be sure.
Glad someone knows the answer… have you experience of this yourself, or just gathered the info from elsewhere … ??
This is lifted from the tax guide published by Le Particulier magazine - a very reliable source. I myself am an ex-fire officer ,and was invalided out after 28 years with a pension and an additional “injury payment” ie. industrial injuries benefit paid under the Fire Service pension scheme. When we came to France in 1993 , I went to the tax office to see what they thought as the injury payment was exempt from UK tax (as a government pension it was also exempt in France , but I didn’t want it counted towards my french tax rate). At that time I did not have access to good french tax advice;I had to get a letter from my pension provider stating that the payment was in respect of an injury received in the course of my employ as a fireman, and that it was payable for life. this had to be translated by an officially licensed translator. I had to also show a pension pay slip. These were accepted , and ever since I have not declared the payment - and the best of it is , that as the fire service rated my disability as more than 40% I get an extra 1/2 point on the quotient familial.
ok great stuff…yes its a government worker’s compensation payment for permanant injury.