Two specific sets of calculations are important in determining an expatriate’s tax liabilities in respect of both the host country and France.

Foreign tax calculation

We can determine the amount of tax you will need to pay in any country. Using the tax law of this country, we can identify potential tax benefit such as deductions, allowances and tax credits, considering your individual situation.

Tax and Social Differential calculation

It consists of:

  • Calculation of the tax amount due in the Host Country (taking into account all tax-free benefits, deductions, allowances, tax credits for which the expatriate may be eligible). This calculation is made regarding the latest information we have.
  • Calculation of French hypothetical tax as it would have been paid if the employee had not left.

The difference between these two calculations is the amount the employer will need to pay. As a taxable income, your employee will support social contributions and income tax calculated on this amount. This “Tax on Tax” calculation gives the final gross amount you have to pay to the expatriate in order to completely compensate the Tax differential.

These calculations are made considering the latest tax information we have: some differences may occur.

In providing tax estimations, Elitax makes best efforts to work with the latest information available. However, Elitax will not be responsible for any modifications arising from late breaking developments to tax rules.