Working abroad, paying French tax
I work outside the country for a large part of the year. Where is my income assessed?
I have been a UK expatriate for 15 years, living and working in Dubai, and moved to Brittany two years ago, and have not been working since.
I have the possibility of an opportunity to return to the Middle East again to do some work for a period of maybe six to 12 months.
While I understand one must declare one’s worldwide income for tax assessment in France, I recently read an article in a UK Sunday newspaper saying that if one works outside France for a continuous period of at least 120 days of the fiscal year, this is not taxable in France. Is this true? I have not read this anywhere else. M.M.
The French rules for the assessment of income earned overseas are more stringent than what you have read, as the only set deductions that are available are for those French employees sent abroad to work.
These deductions are not for those who are either employed outside France by a foreign company, or work as self-employed outside France, as there are alternative methods of ensuring that no more tax is paid than at least would have been the case had the employee been working in France.
With regards to the specific 120-day rule you mention, this is not available to you as it is only available to French employees who are sent abroad for commercial prospecting.
On the basis that you retain your residency in France, then your foreign income would be assessable in France, although this does not necessarily mean that it will suffer taxation.
