French financial updates April 2023

April hails the beginning of tax season. For those eager bunnies who want to get on with it as soon as possible please note that the tax season will begin on 13th April with the online service being available and the new 2022 income tax forms available to be printed online or found at the tax offices from this date.

If you do want to get it over and done with, that is understandable, but actually this year you have a bit more time to get it done as most of the submission deadlines are either towards the end of May or even beginning of June.

Those submitting their first paper returns have until Monday 22nd May 2023 at 11.59pm, as attested by the postal stamp. The other dates for the online submissions are as follows:

• Zone 1 or departments numbered 1 to 19 have until Thursday 25th May 2023 until 11.59pm
• Zone 2 or departments numbered 20 to 54 have until Thursday 1st June 2023 until 11.59pm
• And Zone 3 or departments numbered 55 to 974/976 have until Thursday 8th June until 11.59pm

At the time of writing and until the 13th April, I can’t comment on any changes in the tax forms but in my next Ezine I will give more information about any specific aspects of the 2022 declarations. You can always download our free tax guide HERE and please also look at my adviser page for previous articles on tax matters.

As tax residents in France, you have to declare your worldwide income irrespective of where it comes from. Not everything is taxable, depending on the provisions of the double tax treaty, but everything is declarable. One of the things you do not need to worry about is any French sourced income like salaries, French pensions, French bank interest. This information is generally already completed on your tax return so you just need to check that it is correct. You only need to declare your foreign bank accounts on the 3916 form and not any French accounts or investments.

Tax offices often get confused about what foreign income gets a tax credit under the double tax treaty and what gets a tax credit because it was actually taxed in the country in question whereas, very often, because the income falls under the tax threshold the income wasn’t actually taxed. Well the French Administrative court, the Conseil d’Etat has just confirmed in a decision dated 20th March 2023 (https://www.legifrance.gouv.fr/) that where a double tax treaty grants a tax credit on this income, this is not subject to whether or not the income has in fact been taxed in the country from which it originated.

Finally, an additional energy cheque of an amount of between €48 and €277 depending on income, will be sent out and can be used until 31st March 2024 to pay gas or electricity bills. This is in addition to the exceptional energy cheque and the wood and fuel cheque that have been sent out already.

I will be available for meetings except for the week commencing 17th April as I will be away with my family. But there are still plenty of slots for meetings in the second and last week of April. Please do get in touch with any tax or financial questions.