Cabinet d’avocats dévoué aux français expatriés et aux clients internationaux désireux de s’implanter professionnellement ou à titre particulier en France
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 January1, 2019 (the “Convention”).
The Tax Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income between the Government of France and the Government of Canada was signed on 2 May 1975 and amended in 1987, 1995 and 2010 (the "Convention"). [1]
The objectives of this Convention are manifold.First, the two countries want to promote their economic relations and cooperation in tax matters.In addition, they wish to eliminate double taxation in respect of certain taxes expressly covered by the Convention.
However, the Convention has provided a safeguard: the set-up or strategies put in place by taxpayers, whether natural or legal persons, must not have the sole purpose of obtaining tax relief provided for by the Convention.
The French and Canadian taxes concerned by the Convention are limited to:
This article will help you better understand the tax impacts of your income between the two countries if you are an individual. If you are a company, we have also written an article to guide you.
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“).
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 escape 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 unrealised capital gains realised 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.
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 (a), its scope is not absolute, as exemptions are provided (b).
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
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.
We 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).
Canada is one of the most requested countries in terms of immigration, for several reasons: high-quality education, universal health, employment opportunities, cultural and religious diversity…
As a worker and depending on your current situation, you have different opportunities to immigrate to Canada.[1]
Thus, in this article, we will come back point by point on the different opportunities that are available to you as a worker.[2]
We will first study immigration programs at the federal level, namely Express Entry, the program dedicated to the self-employed and the start-up visa program. These programs will allow you to immigrate to all provinces except Quebec (I).
Next, we will discuss the programs created for young people, namely the Working Holiday Permit and the Young Professionals Permit, which make it easier than other programs to immigrate from anywhere in Canada, including Quebec (II).
Finally, the programs specific to the province of Quebec, namely the Quebec program for permanent workers, temporary workers and business people (III), will be apprehended.
Cryptocurrencies appeared in the digital world a decade ago and are now experiencing significant growth and democratization.
As virtual means of payment that can be used mainly on the Internet, relying on cryptography to secure transactions and the creation of units, and escaping any control from regulators and central banks exists today more, there are today more than 4000 crypto-currencies in circulation.
Nevertheless, their legal framework is sometimes confusing and difficult to understand. This article will thus aim to study the legislative framework of cryptocurrencies in France, Canada and the United Arab Emirates, but also their tax regime. We will then examine, in a non-exhaustive way, the Initial Coins Offerings, a new phenomenon of fundraising based on cryptocurrencies.
What are cryptos in practice ?
A cryptocurrency is a virtual means of payment that relies on cryptography to secure transactions and the creation of units, and that is beyond the control of regulators and central banks. Cryptocurrencies are therefore based on a computer protocol of encrypted and decentralized transactions, called blockchain.
The best known cryptocurrency is bitcoin, which is a virtual unit of account stored on electronic media. Nevertheless, today there are more than 4000 cryptocurrencies in circulation in the world, the best known outside of bitcoin being for example Ethereum, Ripple or EOS, XRP, Tether, Cardan, Stellar, Chainlink, Uniswap, Polkado or USD Coin.
Cryptocurrencies are part of the broader framework of cryopoassets,which represent “virtual assets stored on an electronic medium allowing a community of users accepting them in payment to carry out transactions without having to resort to legal tender”.
The issuance and circulation of digital cryptoassets is particularly related to Initial Coins Offerings(“ICOs”). Unlike a stock exchange issue (IPO), the ICO is financed on digital media called tokens. The ICO thus represents a fundraising operation operating through the issuance of digital assets exchangeable for cryptocurrencies during the start-up phase of a start-up or a business project.
Impatriation is a tax regime that was created for the benefit of French citizens who are tax residents abroad and also called “expats” who want to return to France permanently.
This status aims to encourage French citizens to return to live in France after their expatriation.
Thus, an impatriate will be able to avoid paying French taxes when returning to France by benefiting from an exemption on certain sources of French and foreign income.
In this article, we will go over this impatriation regime point by point.
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