Author: Admin

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

Admin

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

Admin

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

Admin

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?

Admin

  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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WHAT ARE THE CONSEQUENCES BY INTRODUCING A CORPORATE TAX IN THE UNITED ARAB EMIRATES?

Admin

By introducing a corporate tax, the United Arab Emirates (UAE)/Dubai reaffirmed its commitment to international standards of tax transparency and the prevention of harmful tax practices.

This corporate tax, which came into force on June 1, 2023, is governed by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf), (“Federal Decree-Law No. 47 of 2022“).

Taxable companies will now have to register for corporate tax (https://tax.gov.ae/en/services/corporate.tax.registration.aspx) and obtain a corporate tax registration number from the Federal Tax Authority, which is the competent authority for corporate tax matters.

The corporate tax return must be filed for each tax period within 9 months of the end of the tax period.

As regards the rate applicable to this new tax, taxable income over 375,000 AED will be taxed at a rate of 9%, while income below this threshold will be taxed at a rate of 0% (Article 3 of the law).

On reading this Federal Decree-Law No. 47 of 2022 (1.), we understand that its scope is quite wide without being absolute, which will have the effect of subjecting a certain number of people to the tax (1.a), while providing for exemptions under some conditions (1.b).

Furthermore, although taxable income (2.) is numerous, due to the duality of the criteria for determining such income(2.a), Federal Decree-Law No. 47 of 2022 provides for the deductibility of some expenses, which will have the effect of reducing taxation (2.b).

1.Scope of application of Federal Decree-law No. 47 of 2022

Although the law applies to a wide range of individuals and companies (has), its scope is not absolute, as exemptions are provided (b).

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SARL I SCI I LMNP

Admin

When you become the owner of a property in France, and even more so when you're not a French tax resident, sooner or later you're faced with the question of taxation and inheritance. This raises the question of choosing the appropriate structure to manage the rental property as a family, and there are several options, depending on the inheritance/tax angle you wish to pursue.

The choice of one option over another will depend on the objective pursued.

 What are the purposes and conditions of each structure?

 LMNP (non-professional furnished rental) let you earn additional income from real estate in a non-professional capacity.

To qualify for LMNP status, the property must be furnished, and the income generated must not exceed 23,000 euros per year, nor represent more than 50% of total income (unless you are a non-resident).

The family SARL allows you to make a profit while benefiting from lower taxes. This structure is particularly recommended if the financial risk is high, as the liability of the partners is limited to the amount of their contribution (the family SARL is first and foremost an SARL).

In addition to meeting the same requirements as a conventional SARL, it must be made up of partners who are directly related or collaterally related up to the second degree, or by marriage.

 Finally, the family SCI is recommended for the purpose of preserving and passing on assets from generation to generation.

The company's corporate purpose must be real estate (as with traditional SCIs), and it must be made up of family members up to the fourth degree.

Let's take a step-by-step look at the conditions, advantages, and disadvantages of these different structures, which at first glance appear similar but in reality have many differences.

What are the main advantages of these structures?

 – FROM A TAX PERSPECTIVE

Choice of taxation method  

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WHAT ARE THE CONSEQUENCES OF INTRODUCING A CORPORATE TAX IN THE UNITED ARAB EMIRATES?

Admin

By introducing a corporate tax, the United Arab Emirates (UAE) wanted in particular to reaffirm its commitment to respecting international standards in terms of tax transparency and the prevention of harmful tax practices.

Impôt entreprise

This corporate tax, which came into effect on June 1, 2023, is governed by the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf).

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HOW TO BECOME A STUDENT IN CANADA?

Admin

Canada is one of the most sought-after countries for immigration, for several reasons: universal health, employment opportunities, cultural and religious diversity.

In addition, Canada is internationally recognized for its high-quality education system and welcomes many international students every year. However, to study in Canada, it is essential to obtain a study permit. The purpose of this article is to provide an overview of the step-by-step procedure to obtain a study permit in Canada and to become a student in Canada, taking into account the specificities concerning Quebec and briefly explaining how the Canadian educational system works.

Etudiant CanadaWe will first briefly present the Canadian study system in order to have a better understanding of the different procedures (I).

Then, we will approach the procedure to follow concerning the study permit at the federal level outside Quebec (II).

Finally, we will explain the specific procedures to follow to obtain a study permit in the province of Quebec (III).

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FOCUS ON THE TAX TREATY BETWEEN FRANCE & THE EMIRATES – ITS IMPACT ON INDIVIDUAL UAE RESIDENTS

Admin

The taxation agreement between the French government and the Government of the United Arab Emirates was signed on July 19, 1989 and was amended in 1993 to include today also a multilateral treaty to prevent base erosion since the entry into force on January 1, 2019 (the “Convention”).

  

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