Understanding the French tax system can be complex, especially when it comes to income tax. The process of paying taxes in France is one that requires a good deal of information and knowledge about the country’s tax laws.
Income tax in France is called “l’impôt sur le revenu.” This tax is calculated by the French tax administration based on the income you declare, taking into account your family situation, dependents, and other factors. It is an annual tax, which means it is calculated on your income earned during the previous year.
All individuals who are 18 years or older and have an income in France must declare their income, regardless of its amount. Only major children who are dependent on their parents may be exempted. In addition, income tax in France is global, which means that you are taxed on all of your income, whether it is from a French or foreign source.
The income tax in France is also progressive, which means that the more income you earn, the higher percentage you will pay in taxes. The income tax rates in France range from 0% to 45%, and are divided into several income brackets.
If you are 21 years or older, you are required to file an income tax return in France, even if you are not employed. You can file your income tax return online, if you have received a letter from the French tax administration informing you of the possibility to file your return online. If you have not received a letter, you can obtain a paper form from the official website of the French tax administration or at the public finance center (service des impôts des particuliers) in your area.
It is important to note that failing to file your income tax return can result in penalties and interest charges, so it is always better to file your taxes on time. Additionally, it is recommended to seek advice from a tax professional or accountant to ensure that you are taking advantage of all the possible deductions and credits available to you.