Income tax and social charges question
Jan 27th 2017, 4:31 pm
#1
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Income tax and social charges question
I moved to France in July 2016 and am a US citizen. I have a long term visa and I have retired. I will file my tax in the US and now must also file in France as I am resident here.
I know that the US/France bilateral tax treaty means that my salary income earned in the US will not have income tax imposed in France. But, will income tax be imposed on the income derived from US based certificates if deposit. And, will "social charges" be imposed on either sources of income: my salary and the income from the Certificates of Deposit.
If it matters, I have private health insurance so do not avail myself of the health service in France.
Thanks for any guidance!
I know that the US/France bilateral tax treaty means that my salary income earned in the US will not have income tax imposed in France. But, will income tax be imposed on the income derived from US based certificates if deposit. And, will "social charges" be imposed on either sources of income: my salary and the income from the Certificates of Deposit.
If it matters, I have private health insurance so do not avail myself of the health service in France.
Thanks for any guidance!
Jan 29th 2017, 4:03 pm
#2
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Location: The Charente - still smiling.
Posts: 2,624
Re: Income tax and social charges question
I am not an expert Lin, but I suspect the answer is yes to both. I don't think the health insurance makes any difference.
I would suggest contacting an "Expert Comptable" with experience of US citizens. Or at least of foreign residents and dual tax treaties. Mine save me more than their fees most years. And their fees are not usually too bad.
I would suggest contacting an "Expert Comptable" with experience of US citizens. Or at least of foreign residents and dual tax treaties. Mine save me more than their fees most years. And their fees are not usually too bad.
Jan 29th 2017, 5:00 pm
#3
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Re: Income tax and social charges question
I moved to France in July 2016 and am a US citizen. I have a long term visa and I have retired. I will file my tax in the US and now must also file in France as I am resident here.
I know that the US/France bilateral tax treaty means that my salary income earned in the US will not have income tax imposed in France. But, will income tax be imposed on the income derived from US based certificates if deposit. And, will "social charges" be imposed on either sources of income: my salary and the income from the Certificates of Deposit.
If it matters, I have private health insurance so do not avail myself of the health service in France.
Thanks for any guidance!
I know that the US/France bilateral tax treaty means that my salary income earned in the US will not have income tax imposed in France. But, will income tax be imposed on the income derived from US based certificates if deposit. And, will "social charges" be imposed on either sources of income: my salary and the income from the Certificates of Deposit.
If it matters, I have private health insurance so do not avail myself of the health service in France.
Thanks for any guidance!
You will be able to claim a tax credit in the US for the tax you end up paying in France but I would expect this will be more than your tax liability in the US. Whether you get a refund in the US or whether it is simply held as a credit for future years I do not know.
One other thing, you may also be liable to French wealth tax and thus you will have to declare all assets and bank accounts which you hold outside of France.
Jan 29th 2017, 5:58 pm
#4
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Re: Income tax and social charges question
I'm afraid that what you say is not correct. If you are resident in France then you will be liable to tax in France - and this will be on your worldwide income.
You will be able to claim a tax credit in the US for the tax you end up paying in France but I would expect this will be more than your tax liability in the US. Whether you get a refund in the US or whether it is simply held as a credit for future years I do not know.
One other thing, you may also be liable to French wealth tax and thus you will have to declare all assets and bank accounts which you hold outside of France.
You will be able to claim a tax credit in the US for the tax you end up paying in France but I would expect this will be more than your tax liability in the US. Whether you get a refund in the US or whether it is simply held as a credit for future years I do not know.
One other thing, you may also be liable to French wealth tax and thus you will have to declare all assets and bank accounts which you hold outside of France.
That's what I thought, but I do not know the arrangements between the USA and France, so maybe ... ???
