Income tax in France: what knows ?
The French tax return is the first step to pay your income taxes in France. As an expat living in France, you will need to know the French tax regulations and learn how to make your tax return online. What are the elements we need to complete your French tax return, including expenses that can be deducted on your tax form ? The answer to these questions can be found in this article.
Taxation in France: How is it ?
There are three main types of personal taxes in France. To learn more check this. We have French income tax; social contribution and taxes on goods and services. Similarly you must also pay the housing tax or property tax, and if you sell a plot or property or have an estate of more than 1.3 million euros, there may be a capital gains tax to consider. Since 2019, a Pay-As-You-Earn (PAYE) system is used throughout France. Instead of filing an income tax and paying the taxes you owe for the previous year, you will be taxed at the source of income, in monthly installments. The French social security system is one of the most generous in the world and is financed by heavy taxes. The Ministry of Economy and Finance taxes all income earned in France, as well as worldwide income of French residents. Since 2019, income tax is organized through a Pay As You Earn (PAYE) system, in which you pay tax as a monthly deduction from your salary. If you are a conventional employee, your employer collects your tax rate from the government and withholds the corresponding monthly amount from your salary. Social security contributions are separate from your income tax payments.
Federal taxes in France
Taxes in France are considerable. Indeed, as a person residing or earning money in France, you can pay taxes on the following items, among others : personal income on an annual basis ; investment ; business or business income ; heritage ; property ; wealth ; purchased goods and services. If you do not plan to use an accountant, be sure to do extensive research so as not to end up with fines or penalties.