Month: July 2023

FOCUS ON THE COUNCIL OF STATE RULING OF MARCH 20, 2023, WHICH REITERATES THE LEGAL VALUE OF BILATERAL TAX TREATIES UNDER FRENCH DOMESTIC LAW & WHICH SHOULD REASSURE NON-RESIDENT FRENCH EXPATRIATES OR FUTURE EXPATRIATES

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Council of State

When you are considered a French tax resident, you are required to report all your income to the French tax authorities, regardless of where you earned it. So, if you receive income from abroad, you are obliged to declare this income to the French tax authorities.

If you do so, you may be subject to double taxation. The double taxation mechanism means that French tax residents are taxed twice. Income could therefore be taxed in two countries at the same time. This situation arises when an individual or a company is located in two different countries that have not signed a tax treaty with each other.

In this case, a treaty between the government of the French Republic and the government of the United Arab Emirates (“UAE“) for the avoidance of double taxation was signed on 19 July 1989 and amended by an addendum dated 6 December 1993 (the “France-Emirates Tax Treaty“).

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FOCUS ON THE COUNCIL OF STATE'S JUDGMENT OF MARCH 20, 2023 REMINDING THE LEGAL VALUE OF BILATERAL TAX CONVENTIONS ON FRENCH DOMESTIC LAW & WHICH SHOULD REASSURANCE NON-RESIDENT FRENCH EXPATRIATES OR FUTURE EXPATRIATES

Admin

Conseil d'Etat

When you are considered a French tax resident, you are required to report all of your income to the French tax authorities, regardless of where you earned it. Therefore, if you receive income from abroad, you are required to declare this income to the French tax authorities.

In such a case, you could potentially face double taxation. The double taxation mechanism means that the French tax resident is taxed twice. Income could therefore be taxed in two countries at the same time. This situation arises when the individual or a company is located in two separate countries that have not concluded a tax treaty with each other.

In this case, an agreement between the government of the French Republic and the government of the United Arab Emirates (" WATER "), with a view to avoiding double taxation, was signed on July 19, 1989 and amended by an amendment dated December 6, 1993 (the " France-Emirates Tax Convention ").

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THE EXIT TAX OR WHEN FRENCH EXPATRIATES FROM THE EMIRATES ARE IN THE SIGHTS OF THE FRENCH TAX AUTHORITIES

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Exit Tax picture

Germany announced last February that it had purchased tax data on millions of people living in Dubai.

Questioned by Les Echos, the Directorate General of Public Finance confirmed that the sharing of this data with the French tax authorities has already taken place.

The French authorities are therefore now seeking to get their hands on possible fraudsters in these data and the presence of “undeclared income” and “unknown possessions” of people wishing to avoid taxation in their country. In particular, the aim is to verify whether French entrepreneurs who have gone to Dubai have paid the “exit tax” which affects unrealized capital gains realized in France and abroad (1).

This article will retrace the contours of the concept of exit tax in order to inform French expatriates residing in Dubai on their compliance or not with French tax law due to their change of tax residence from France to the Emirates.

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SARL – SCI – LMNP

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When you become the owner of a property in France, especially when you are not a tax resident in France, you sooner or later ask yourself the question of the taxation of this property and of inheritance. This raises the question of choosing the appropriate structure to manage the rental of a property as a family, and several options are available depending on the inheritance/tax angle you wish to prioritize.

The choice for one option rather than another will be made in particular according to the objective pursued.

What are the objects and conditions specific to the structures that can be considered?

There Non-professional furnished rental (LMNP) as for it, allows you to receive additional income from real estate while having a non-professional status.

The accommodation concerned by the rental must be furnished and the income generated cannot exceed 23,000 euros per year, nor represent more than 50% of the total income (unless non-resident) to retain LMNP status.

There Family LLC allows you to make profits while benefiting from reduced taxation. This structure is particularly recommended if the financial risk is high since the liability of the partners is limited to the amount of their contribution (in fact, the family SARL is above all an SARL).

In addition to meeting the conditions for setting up a traditional SARL, it must be made up of partners with a direct or collateral family relationship up to the second degree or through marriage.

Finally, the Family SCI is recommended with the aim of preserving and transmitting heritage from generation to generation.

The company must necessarily have a real estate activity as its corporate purpose (as for classic SCIs) and must be made up of members of the same family up to the fourth degree.

Let's look point by point at the conditions, advantages and disadvantages of these different structures which at first glance are similar but which in reality have many differences.

What are the main advantages of these structures?

– FROM A TAX POINT OF VIEW

SARL SCI LMNP

Choice of taxation method

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HOW TO IMMIGRATE TO CANADA AS A WORKER?

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  THE Canada is one of the most sought-after countries for immigration, for several reasons: high-quality education, universal healthcare, employment opportunities, cultural and religious diversity, etc. 

As a worker and depending on your current situation, you have different options for immigrating to Canada.[1].
So, in this article, we will go back point by point over the different opportunities available to you as a worker.[2].

We will first examine federal immigration programs, namely Express Entry, the program for self-employed workers, and the business start-up visa program. These programs will allow you to immigrate to all provinces except Quebec. (I).

Then, we will discuss the programs created for young people, namely the Working Holiday Permit and the Young Professionals permit, which allow immigration more easily than other programs, from anywhere in Canada, including Quebec (II).

Finally, the programs specific to the province of Quebec will be addressed, namely the Quebec program for permanent workers, for temporary workers and for business people (III).

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