According to the data from the International Tax Competitiveness Index 2022 report, the French tax system occupies the last, i.e. 38th place in the ranking. Once again, it was rated the worst among other OECD countries. How to settle taxes in France? Check!
Tax settlement for work in France
When discussing the rules of settling taxes for work in France, reference should be made to the agreement concluded between the Government of the Polish People’s Republic and the Government of the French Republic (Journal of Laws of 1977, No. 1, item 5, as amended) on the prevention of double taxation in income and property taxes. According to the findings, remuneration for work in France obtained by a Polish tax resident is subject to taxation in France.
There is some derogation from this rule for taxpayers meeting all of the following conditions:
- The total stay of the taxpayer in the country of employment does not exceed 183 days in a given tax year.
- The employer paying the remuneration does not have a place of residence/registered office in the country where the work is performed.
- Remuneration is not borne by a permanent establishment or a fixed base which the employer has in the country in which the work is performed.
If the taxpayer meets all these conditions, then he can settle the French salary in Poland.
Work in France – tax free amount
Income tax rates for residents of France in 2023 will be as follows:
| Annual taxable income per person | Tax-free allowance |
| below 10.777 EUR | 0% |
| 10.777 – 27.478 EUR | 11% |
| 27.479 – 78.570 EUR | 30% |
| 78.571 – 168.994 EUR | 41% |
| over 168.994 EUR | 45% |
Non-residents of France are taxed at the minimum rate, which is currently 20%.
Important! Each non-resident has the right to apply for a tax settlement at the average rate. If you are in this case, please follow the rule. In order to be able to appeal, when submitting the declaration, you should provide a list of all income earned in a given year (including foreign ones) and tax reliefs. If it turns out that the averaged rate is less favorable for you like a taxpayer, then the application is abandoned.
Taxes in France – how to settle?
Before 2019, employers were exempt from the obligation to file taxes for their employees. People employed in the company had to take care of it themselves – watch the deadlines and pay the tax authorities.
However, from January 1, 2019, the French government introduced a revolutionary change in tax law. We are talking about the Pay As You Earn principle, abbreviated as PAYE, according to which the employer deducts the advance on income tax from the employee’s salary – l’impôt sur le revenu. Formalities related to the settlement and payment of taxes are also on the side of the employer.
Filing a tax return in France
There are two tax return forms, i.e. Declaration des revenus:
- For residents (Services des impôts des particulier – SIP)
- For non-residents (Service des impôts des particuliers non-residents – SIPNR)
If you settles taxes in France for the first time, you should complete the appropriate form and send it to the tax office. In addition, an e-form must be submitted, which can be found at www.impots.gouv.fr (Cerfa n°10330*16 Autre numéro: 2042).
For subsequent tax periods, the taxpayer receives a partially declaration completed by the tax office (déclaration préremplie). It is necessary that you to check whether the content of the declaration does not contain errors. The taxpayer should make corrections if the data does not match or has changed since the last settlement period (e.g. change of status or place of residence).
This is a common form of filing a tax return among for the people who do not have access to the Internet, the elderly or people with disabilities.
Taxes in France – tax declaration online
From 2019, it is mandatory to you to submit a tax return electronically (concerning taxpayers with such an option). The basic document for the tax settlement is the declaration 2042 with attachment 2041-e. This document is dedicated to both – residents and non-residents.
As in the case of a traditional declaration, the content of the online declaration is already pre-filled (salary, benefits, family situation). The empty fields of the form should be filled in by the taxpayer.
From April 10, 2019, an online tax declaration service has been operating. Through it, you create an Individual Profile for each taxpayer in France. To log in to, go here and log in using your 13-digit fiscal number and password. After logging in, the website will immediately redirect you to the pre-filled declaration and the declaration to be filled in yourself. If the data in the document has errors, they should be corrected in the note d’information field. Once the changes are approved, you can submit the declaration.
French tax return deadlines 2023
The exact deadlines for submitting declarations are available on the French government website. In the table below, we have collected the dates applicable in 2023 and the dates of issuing the avis d’impot, i.e. a return letter from the tax authorities indicating, among others, tax amount.
| Who | Deadline for submitting a tax return in France in 2023 |
| submitting a paper declaration (all of France) | May 30, 2023 (until 11:59 p.m.) |
| online declaration (departments 1-19) | May 23, 2023 (until 11:59 p.m.) |
| Individuals submitting an online declaration (Divisions 20-54) | May 30, 2023 (until 11:59 p.m.) |
| Online Declaration Persons (Departments 54-976) | June 7, 2023 (until 11:59 p.m.) |
| For residents residing outside France | May 23, 2023 (until 11:59 p.m.) |
| Date of receipt of the Avis d’impot |
| Persons who will receive a tax refund: between July 24 and August 4, 2023 (online declaration) between July 28 and August 30, 2023 (paper declaration) |
| For people who have nothing to pay: between July 24 and August 4, 2023 (online declaration) between August 1 and August 30, 2023 (paper declaration) |
| For persons who should pay the amount due up to the tax amount: between July 28 and August 4, 2023 (online declaration) between 4 and 25 August 2023 (paper declaration) |
Source: https://www.aide-declaration-impot.fr/dates-limites-de-la-declaration-de-revenus-2023/
Taxes in France – changes in 2023
The beginning of the New Year brings many changes, also in tax law.
Increase in the amount of property tax – inflation contributed to the increase in rent prices by as much as 7.1%, among others in Paris, Grenoble and several other cities.
Introduction of the „fuel allowance” – this is a form of financial assistance for people on low incomes who are forced to commute to work by their own car. There is talk of an amount in the order of EUR 100.
