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News n°18 - Summer 2009
Summary
• Next deadline
• Wealth tax
• Info : French tax notices (Avis d’Impot) are being sent until September
• Warning : Fines for no submition of French Tax declarations
Next deadline
15/06/2009:
Wealth tax : Deadline to submit 2009 Wealth tax declaration for French tax resident
30/06/2009:
French income tax returns : Deadline to submit 2008 French income tax returns (forms 2042, 2042C and 2044)
15/07/2009:
Wealth tax : Deadline to submit 2009 Wealth tax declaration for non residents
15/09/2009:
French income tax returns : Deadline to pay the French income tax on 2008 incomes
Full schedule...
Wealth tax

Who is liable to Wealth Tax ?

The persons liable to French wealth tax are :
• individuals,
• whatever their nationality is,
• owning on the 1rst January 2009 a taxable asset whose net value is superior to 790000 euro
• regardless of the fact that they are French or foreign tax residents.
A French tax resident is liable to Wealth Tax on ALL its assets in France and abroad.
A non resident is liable to Wealth Tax only on its French assets, excluding its financial assets.

How to estimate the taxable assets ?

The taxable assets have to be estimated for their net value.
This net value equals :
• the market value on January 1st, 2009 that is the price which would have been obtained in selling the asset
• decreased by the debts :
• in charge of the household
• existing on January 1st, 2009,
• which can be justified
Example : mortgage, alimony allowance (approved by law), income tax, wealth tax, residence tax & TV tax, land tax…
The persons liable to wealth tax have to attach to their wealth tax declaration all the elements proving the existence, the object and the amount of the debts for which the deduction is included on this declaration, excepting the elements concerning the taxes.

Note : Regarding the estimation for the value of the main home, there is a tax allowance of 30% on the market value of the main home occupied by its owner.

How to calculate the wealth tax ?

When the net value of the taxable asset is superior to € 790 000, the Wealth tax is calculated according to the following tax scale (as from January 1rst 2009) :
Fraction of the taxable net value of assetsApplicable rate
Not exceeding 790 000 €0 %
From 790 000 € to 1 280 000 €0.55 %
From 1 280 000 € to 2 520 000 €0.75 %
From 2 520 000 € to 3 960 000 €1.00 %
From 3 960 000 € to 7 570 000 €1.30 %
From 7 570 000 € to 16 480 000 €1.65 %
Over 16 480 000 €1.80 %
Then the amount of tax is decreased by € 150 for each dependant of the household.
Dependants are :
• children under the age of 18 or disabled ;
• under the same conditions, children who have been adopted by the household ;
• persons holding a disabled card (according to article L 241-3 from the social and family code) under the condition that they live with the tax payer. The spouse of the taxpayer, the partner linked by a PACS or the living companion cannot be considered as a dependant.
 We can assist you to prepare your 2009 Wealth tax declaration, click here.
Info : French tax notices (Avis d’Impot) are being sent until September
The 2008 tax notices (“Avis d’Impot – Impots sur le Revenus 2008” – Green form n°1534) will be sent you from August to September. When you will receive your tax notice, please respect the deadline to pay your income tax (15/09/2009).
Please note that you need to keep this document in your records. You will find your Fip number on it (registration number of your household to the French tax administration), that you will need to enter on your next year’s tax declaration.
More information...
WARNING : Fines for no submition of French tax forms and for late payment of VAT
The French tax administration requires the payment of fines for the no submition of your tax forms.
The fine for no submition of your annual Furnished Assets Income Tax Return is € 1200.
The fine for no submition of your annual VAT return is € 150 + a forfait taxation based on the estimation of the VAT that you should pay (usually higher than the real amount).
If the fines are not paid to the French tax administration, the latter has the right to seize your French bank account and/or your French property and its rental incomes ; in order to get back the money you owe the administration.
Also, if you pay your annual VAT after the deadline, ie 30th April 2009, the tax administration requires the payment of penalties, usually 10% of the amount of the VAT (being a mimum).
More information...
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