Do french people working in Switzerland have to pay taxes?

[Gen-eva]

I have heard from  my travels in Haute Savoie, of people living in france and working over the border in Geneva, not having to pay income tax? I've heard this quite a few times. Is this correct? I thought anyone domiciled in France was taxed on his worldwide income. Does it depend on citizenship? I also know of a relative living in france, who pays no income tax (or very little) because he works overseas most of the year (middle east, Brazil, etc).  Also what of social taxes - what would the situation be.

[HoneySuckleDreams]

There are differen rules for "frontaliers". It's the same for those living in France but crossing the border into Luxembourg

 

http://www.frontalier.org/fiscalite.htm

[andyh4]

France has a whole series of bi-lateral tax agreements with other countries which defines where tax will be paid if a person might be regarded or is tax resident in two countries at the same time.

 

These agreements are generally to avoid an individual being taxed twice on the same income*.  However anyone who is French tax resident is still required to declare their income earned outside France to the French tax authorities in their annual tax returns.

(* They also clarify which country is allowed to collect which taxes.)

 

As HSD correctly says there are special frontalier arrangements for those who cross the borders on a daily basis to work.

 

Because each of the tax agreements is bi-lateral, it would be necessary to look at each and every to give an overall opinion and normally an individual will only be interested in a single agreement (or double taxation treatey as they are more genrally known).

 

I guess that in this respect I am already an exception since 3 double taxation treaties apply to my family situation since as a family we are deemed tax resident simultaneously in 3 countries.

[parsnips]

Hi,

    Not only do they in most cases pay no french tax , but if they have social contributions deducted from their foreign pay they pay no CSG and CRDS on it either.      It was as an indirect result of the introduction of this CSG exemption (against french official opposition) that UK pensions were also exempted.    At the time the french argued that the social charges were in fact a tax and should be paid by all residents , the European Court ruled that they were what they said they were , a contribution to specific benefits and if the resident was paying (or in the case of UK pensioners-had paid) these elsewhere , they would not be required to pay again in France.  The reason behind this was EU regulation 1408/71 as amended by EC /883/2004 which rules that a person can be subject to only one social security regime at any one time.

     Problems could arise (see thread "Heads up......") for UK pensioners if the CSG is merged with income tax , as the argument that it is a benefits - targeted contribution could no longer be made, and those pensions which are taxed now , but free of CSG , like the OAP and others received by S1 holders , would presumably be subject to the whole combined imposition.

      

[HoneySuckleDreams]

Parsnips;

Just to be clear. If i am paying Caise Maladie in Luxembourg, I can get that money deducted from the CSG in France? I was working Micro-BNC for the early part of the year and then got a salaried job in Lux, so i'm paying tax/NI in luxembourg. When I declare that income to the french I can get some money deducted?

[parsnips]

[quote user="HoneySuckleDreams"]

Parsnips;

Just to be clear. If i am paying Caise Maladie in Luxembourg, I can get that money deducted from the CSG in France? I was working Micro-BNC for the early part of the year and then got a salaried job in Lux, so i'm paying tax/NI in luxembourg. When I declare that income to the french I can get some money deducted?

[/quote]

Hi,

 As I understand it you declare the luxembourg earnings on form 2047 sec VI   and 2042 box 8TK, and they will not be subject to income tax or CSG , but will be taken into account in calculating your french tax rate.   First time you may find it best to take the forms to your french tax office to discuss.

[pangur]

Yes, you generally pay tax but it can differ according to canton. If you work in Geneva and live in France, you are taxed at source but I believe if you work in Vaud, you pay tax to France.   In general, it works out so that you pay more or less the same overall in social costs and tax.  For example, a person living in France and working in Switzerland has to have a special kind of health insurance for Frontaliers.  And there is also some kind of goverment level redistribution - frontaliers inform their Marie of the status and I believe the commune gets a credit at some point. But you do have to fill out a tax form if you are resident in France.

People who don't pay any tax at all are probably some of the many UN workers, who are outside both the French and Swiss system. They don't pay taxes but do have to tick a box on the tax form (they are not entitled to any kind of state unemployment, health benefits or pensions either)

And of course you get to pay tax d'habitation etc if you are resident.