Hi All,
Can anyone recommend a French expert comptable for help with double taxation and split year tax returns? I am heading off soon for 10 months abroad and need some advice.
Thanks !
Apologies - you may already know this and/or it may not be the answer you want/expect…
If I may make the rash assumption that you are currently French resident, and will return to France after your 10 month period overseas, France is most unlikely to let you out of its clutches whilst you’re overseas. You would in all likelihood continue to be French resident throughout, reporting worldwide income and gains to France, as now..There would be no split tax years etc.
France will generally give credit for foreign taxes incurred whilst you’re overseas against the French liability on the same income or gains to avoid double taxation. French tax residence is basically very adhesive and quite difficult to shake off.
In practice the double tax issue is more likely to arise at the other end, ie the country or countries where you are spending those 10 months. If you’re not working whilst overseas, it’s relatively simple, possibly no action required in that country, but if you’re working, then you might need advice on tax reporting obligations there, and how to ensure there is relief from double taxation. Unless there are special personal circumstances, I think the tax issue - if any - is more likely overseas, not here in France.
Hi George1,
That’s what I expected, and the reason I am after the advice! I have an expert set up in the destination country, but I still have a few outstanding questions on the French side.
Just how difficult is it to shake off F tax residency George1? I can understand for 10 months it’s not happening, but what if it had been a period of a year or more encompassing at least 1 complete calendar year?
If you really do properly relocate overseas, become a tax resident in the overseas country, have no home available to you in France (ie sold home or it is fully let out long term), are working full time overseas, own overseas property or have a lease, the bulk of investments, bank accounts etc are overseas, bulk of income comes from overseas, visits back to France are minimal, family relocate with you,. rather than remaining in France, you are away for rather more than a year (ideally two or three years +)…then you would stand a pretty good chance of France regarding you as non resident. Otherwise it any of these factors above are not present, the risks of France continuing to treat you as resident increase…
Ultimately French residence/non residence is a view of an individual’s facts and circumstances ‘in the round’ rather than being mechanically determined by day counting etc
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Agree with you George. The only point I would add would be a need to check the specific tax treaty with the country involved - as you note its a matter of facts and circumstances and if the setup is anything like the france/uk one the foyer or place of usual residence will be important.
Thanks George1. Food for thought. I’m finding it quite interesting that immigration rules and tax rules don’t always say the same thing also.