3. Liability to French Income Tax

1. 3.1 Basic Rules on Liability to Income Tax
2. 3.2 Are you Resident or Non-Resident?
3. 3.3 What is your Fiscal Household?
4. 3.4 What Income is Taxed in France?

3.1. Basic Rules on Liability to French Income Tax

Personal income tax in France is called Impôt sur le revenu.

You are liable to French income tax if:

• You are fiscally resident in France;
• On the income of the whole household;
• And on the basis of your worldwide income.

You may also be subject to French income tax even if you do not have a permanent home in France. The extent of your liability will depend on the type of income you earn in France and the terms of any double taxation treaty (convention) between your home country and France.

These taxation treaties have been developed in order to avoid a situation where the same income is taxed twice, and to determine the rights of taxation between two countries.

The treaties form the basis upon which a decision is made as to the country in you are considered to be 'fiscally resident', and the basis upon which you will be taxed.

Thus, for example, rental income is normally taxable in France, as is certain other income.

In the following pages we summarise the potential tax liability in France of individuals. Business interests and certain other specialist employment groups affected by cross-border taxation policies are not considered in any detail.

We have other pages on the Taxation of Business Profits in France.