You may have been in living in France for several years, or maybe you arrived in France in 2021 and decided to live here permanently. In both cases, you must file an income tax return (“declaration des revenus”) this year to report your worldwide income received in 2021. Our French tax advisors can assist you in preparing and filing your income tax return.
1. Deadline: when is your French income tax return due?
For taxpayers who do not have access to the French tax authorities’ website to file their French income tax return, they will have to file it on paper. In such a case, the French tax authorities have announced that the deadline for these taxpayers is May 31st, 2022 [Initially, it was May 19th, but it has been postponed by the French tax authorities].
For non-tax residents, the filing deadline is May 19th, 2022.
For tax residents having access the French tax authorities’ website, the filing deadline will vary based on their area of residence, as follows:
|01 to 19||May 24th, 2022|
|20 to 54||May 31st, 2022|
|55 to 976||June 8th, 2022|
If you are late for the filing of your income tax return, you may be subject to late filing penalties. To avoid the application of such penalties, we can file your income tax return on your behalf, and you may be able to benefit from a time extension. If you are in this situation, we encourage you to reach out to our team of French tax advisors.
2. What is required to file your first French income tax return?
If it is your first time filing an income tax return in France and if you must file it on paper, you will need to provide to the French tax authorities the following documents in addition to your income tax return:
- The details (RIB/IBAN + BIC code) of the bank account you would like to use for the payment of your French income tax and social contributions, if any. This bank account should be in the European Union.
- A clear copy of your ID or passport.
- If you are not the owner of the residence you occupy, a copy of your lease agreement. In addition, you will have to indicate the details of the owner of the property you occupy in your income tax return.
3. What do you need to report in your French income tax return?
When you are a tax resident of France, you need to report your French and foreign income to the French tax authorities. This includes, for example, foreign interests, dividends, or capital gains, but also pension income paid by your former employer outside France or by the State you were living in prior to arriving in France.
For example, if you are an American citizen living in France, you will have to report to the French tax authorities your interests and dividends received on your bank accounts held in the United States, and any capital gains realized in the United States.
In addition to this, you need to report all your bank accounts held outside France, or any foreign life insurance policies, endowment policies, or capitalization contracts. Failing to do so can trigger the application of a € 1,500 penalty (which, in certain cases, can go up to € 10,000) per bank account or life insurance policy (or any similar policies) owned outside France, or an 80% penalty based on the amount of taxes due in relation to any income received on these bank accounts.
4. What else do you need to know?
If you are a French tax resident, we remind you that you also have to report to the French tax authorities capital gains realized when selling real estate, whether it is located in France or in another State, as you may be liable to the French capital gain tax and social contributions.
In addition, you must file an inheritance tax return in France if you inherited assets while being a French tax resident, as you may be liable to the French inheritance tax.
Do not hesitate to contact our team of French tax advisors if you need help in preparing your French income tax return.