FRENCH TAX ONLINE: News n°22

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News n°22 - Summer 2010

Summary

• Next deadline
• EVENT: FRENCH TAX ONLINE IN LONDON
• French Wealth tax

Next deadline

15/06/2010 Deadline to submit and pay the 2010 Wealth tax for French tax resident
30/06/2010 Deadline to submit 2009 French income tax returns (forms 2042, 2042C and 2044)
15/07/2010 Deadline to submit and pay the 2010 Wealth for non residents of Europe (the deadline is extended to the 1st September for non residents of elsewhere)
15/09/2010 Deadline to pay the French income tax on 2009 incomes

Full schedule...

EVENT: FRENCH TAX ONLINE IN LONDON

In association with Assetz France, we will take part to the French Property Seminar held in London on Wednesday 7th July :

“Want to buy a property in France but still looking for answers to your questions or for the right property?
We have helped hundreds of clients buy in France and we also buy ourselves, so we know exactly what it is like.
We design our seminars to cover all of the questions that you are likely to have. Whether your question is about finding, negotiating, buying, financing, furnishing or letting French property, one of our presenters will know the answer.”

For more information on the time and place of this event, please click here...

French Wealth tax

Who is liable to Wealth Tax ?

Any individuals, regardless of their nationality and country of residence, owning on January 1rst 2010 a taxable asset whose net value is superior to 790 000 euro are liable to the French Wealth Tax – Impôts de Solidarité sur la Fortune (ISF).
The extent of your liability will depend on whether or not you are a French tax resident :

• If you are a French tax resident, the whole of your worldwide (in France and abroad) must be taken into consideration into the declaration.
• If you are a non resident, only the French assets excluding the financial assets are taken into consideration.

As the French tax system is one of self assessment, it is for each household to assess and determine for themselves whether or not they consider they are liable to pay wealth tax.

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, 2010 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, 2010,
• 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 : If you are a French resident, there is a 30% allowance against the value of your principal home. This concession does not apply to second homes.

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 1st 2010) :

Fraction of the taxable net value of assets	Applicable rate
Not exceeding 790 000 €	0 %
From 790 000 € to 1 290 000 €	0.55 %
From 1 290 000 € to 2 530 000 €	0.75 %
From 2 530 000 € to 3 980 000 €	1.00 %
From 3 980 000 € to 7 600 000 €	1.30 %
From 7 600 000 € to 16 540 000 €	1.65 %
Over 16 540 000 €	1.80 %

The tax is imposed on a sliced basis :
For example if your net French assets are valued to 900 000 euro, you would only pay tax on 110 000 euro, at the rate of 0,55%, as the first 790 000 euro has a zero rating.
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 2010 Wealth tax declaration, click here.

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