Tax Consultation on Departure from France
Taxes are a big deal, and they can be confusing. The tax rules become even more complicated when people leave France to work or live in another country.
This post will cover what you need to know about taxes when departing from France. We’ll start with some general information before getting into the specific types of taxes that apply to expatriates.
Tax Consultation on Departure from France
When you choose to leave France, it’s vital that you get your tax affairs in check as soon as possible. Unfamiliar tax laws and unpaid tax bills can lead to stress and even financial penalties.
Avoid all of these worries with Elitax. We offer a tax consultation on departure from France that will ease your concerns. Getting into good financial habits will make life in a new country far more relaxing.
If you think you could benefit from a tax consultation with Elitax, get in touch today.
What Happens During the Tax Consultation?
This service consists of a written consultation to determine each expatriate’s individual situation regarding tax residency and tax obligations in France and in the country of origin, or in France and in the country to which he/she is being transferred. Our team looks at each individual case and gives helpful, bespoke advice.
The expatriate fills in a questionnaire that allows us to assess both individual circumstances (marital status, dependents, personal assets, sources of income, etc.) and professional situation (split-salary, multiple contracts, etc.).
The consultation questionnaire is a 12-to-20-page document, depending on the complexity of the case. It’s useful for both employer and employee and guarantees the process of the moving country is made easier. It permits the employer to fulfill their information obligations towards expatriate employees and keeps the expatriate employee up to date with current and future tax responsibilities.
Income Tax Calculations
During the tax consultation on departure from France, we will advise on the individual’s income tax liabilities. Using a number of calculations, we can determine an expatriate’s tax liabilities in respect of both France and the country that the expatriate is leaving or moving to.
1. Foreign Tax Calculation
We can determine the amount of tax the individual will need to pay in any country. Using the tax law of this country, we identify potential tax benefits such as deductions, allowances, and tax credits.
2. Country of Origin Hypothetical Income Tax (Hypo Tax)
We calculate, for comparison purposes, the income tax the individual would have paid if they had stayed in the country of origin.
3. Tax and Social Security Differential Calculation
This consists of calculations of:
- The actual social security contributions in the host country and the hypothetical social security contributions in the country of origin.
- The tax amount due in the host country (considering all tax-free benefits, deductions, allowances, and tax credits for which the expatriate may be eligible).
- The difference between two amounts: the actual social security contributions, plus income tax amount in the host country, and the hypothetical social security contributions, plus income tax amount of the country of origin.
In the case of the final point, the difference between these two calculations is the amount the employer will need to compensate. As a taxable income, your employee will be liable for social security 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 to completely compensate for the tax difference.
In providing tax estimates, Elitax makes every effort to work with the latest information available. However, Elitax will not be responsible for any modifications arising from late changes to tax rules.
Why Choose Elitax?
Elitax is a group of knowledgeable and qualified tax professionals. For over 15 years, we’ve been providing expert advice on French taxation to individuals and businesses.
We take pleasure in providing personalized service to each customer, assuring them of the finest possible advice for their specific situation. As a bilingual team, we are also well equipped to offer guidance in both English and French. You can be confident that your taxes will be looked after and there will be surprise bills at the end of your tax year.
If you are an expatriate looking for a tax consultation on departure from France, please do not hesitate to contact us. We would be happy to answer any questions you may have.
Why Is Tax Consultation Important When Leaving France?
When an individual leaves France, it’s important to consult with a tax specialist in order to understand the tax implications of their departure. While departers may just want to explore their new home and forget about their tax affairs, it’s important to be aware of the potential tax liabilities in order to avoid any surprises down the road.
A good tax consultation will provide a full overview of an individual’s income tax and social security obligations in France and the new country they are moving to. This includes calculating both the foreign taxes that will need to be paid and the hypothetical income tax in France, which can then be used for comparison.
While an individual may think they understand their tax obligations in France before departing, it is not always clear until a consultation has been conducted whether or not there will be any additional taxes that need to be paid upon departure from France. It’s important to have a full understanding of all the tax implications before making any final decisions about leaving France.
Contact Us Before or After Departure
Elitax is a group of tax professionals who have been providing expert advice on French taxation for over 15 years. We take pride in providing personalized service to each customer, ensuring them of the finest possible advice for their specific situation.
As a bilingual team, we are also well equipped to offer guidance in both English and French. If you are an expatriate looking for a tax consultation on departure from France, please contact us. We would be happy to answer any questions you may have.
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Thank you Elitax for providing such a no fuss, friendly and efficient service. We have used Elitax for 3 years now and would not hesitate to recommend them.
ELITAX has been fundamental as our tax consultants our expatriated personnel to our day to day operations.