-
Rise in number of French businesses failing
It means 44,000 jobs will be lost by end of year. We look at what help is available for small business owners
-
France set to pass emergency ‘budget law’: is it good or bad for your finances?
The country will effectively be without a budget from 2025, with knock-on effects for individuals and companies
-
Cash, cheque, bank cards: what payment types can a shop legally refuse in France?
There are clear rules on how, when and why businesses can refuse to accept payment
Why did declaring UK pension in France cause new 0.4% tax levy?
French tax authorities cannot apply a ‘withholding tax’ on pensions but can take money from your bank account each month as an on-account payment
Reader question: I live in France and receive a company pension from a UK company. Since declaring this income in France, I have been charged withholding tax at 0.4%, which increased to 0.9% the following year. The tax office said this was correct but do you know whether this is right? S.A.
The French tax authorities cannot apply a ‘withholding tax’, as such, on foreign pensions but it is possible that they are taking money from your bank account monthly as an on-account payment for the expected income tax due for the current tax year.
If this is the case, then yes, it is correct in principle and everything may be in order.
One means of checking this is to see if the payments are taken from your bank account at around the 15th of the month – if so, it would confirm this to be the case.
As to whether the amount being taken is correct, that would depend on the tax liability of the previous tax year and whether the income of that year and the current year are similar.
If the amount is too much or too little compared to actual pension income this year, there will be a ‘régularisation’ later (more to pay or a refund). Alternatively, you can request a modification via your personal space on the tax website if you believe the difference to be significant.
To understand fully, ask the tax office to explain to you exactly what the tax is.
Related stories:
French pensions to be tied to inflation in July, labour minister says
Life certificate issues for Britons in France caused by system error
France’s pension top-up aid unclaimed by 50% of people, study shows