Income from securities: If the convention provides that this category of income is taxable both in the country of origin of the income and in France, a tax credit, most often equivalent to foreign tax, applies to avoid double taxation. You need to fill out the printed forms #2042/2042C and #2047. People who are economically active or reside in more than one country sometimes face complex tax rules. These persons must therefore check whether they are not subject to double taxation. The agreements provide in principle for the taxation of real estate income from immovable property located abroad in the country where the property is located. Income is exempt from tax in France, but must be reported according to the effective tax rate method for the taxation of income from French sources. However, some conventions provide for the taxation of such income in France and the elimination of double taxation by the application of a tax credit generally equivalent to French tax. It is first necessary to consult the tax treaty that binds France to the country from which the income originates. In the absence of an agreement, the income is taxable in France. In this category, it is also the agreement that provides for the principle of taxation.
In the absence of an agreement, the income from assets is taxable in France. Capital gains:Three types of capital gains are provided for in the agreements: wage salaries and pensions:If the agreement provides that income is exempt from tax in France, enter the income to tax French income according to the effective interest rate method. If the convention provides that the income is taxable in France: to avoid double taxation, most often, it is a tax credit equal to the French tax that applies. You need to fill out the printed forms #2042/2042C and #2047. Special rules for frontier workers are included in the following double taxation treaties: the countries with which France has double taxation treaties (SAAs) are listed below: Bulgaria Bulgarian tax treaties and international treaties Finally, it should be noted that 148 conventions on the taxation of income have been signed by France and that, therefore, you depend in principle on one of them. You can contact one of our English-speaking accountants to get the text. It goes without saying that we can also examine your situation in order to avoid double taxation. To find out how to declare in France your income from the liberal professions (agricultural profits, non-commercial profits, industrial and commercial services) from a foreign source, first refer to the agreement that binds France to the country of origin of the income. In the absence of an agreement, the income of the self-employed professions is taxable in France. Unless expressly excluded by an agreement, income from foreign sources is taxable in France. Residents are entitled to tax credits for WHT paid on certain types of income from other treaty countries.
However, income from foreign sources exempt from French tax under a tax treaty is added to taxable income in France, either to determine the French tax rate for taxable income in France (exemption with progressivity) or to calculate the gross French tax debt from which the tax paid abroad is deducted (tax credit system), depending on the applicable tax treaty. . . .