Income tax in France - Help

Hi all,

I've got a question about how to work out income tax in France... I
think it is fairly straightforward, however have been unable to find a
simple explanation in English, or a simple enough one in French that I
can understand. It seems that the French tax office do a good enough
job of working it out that no-one in France seems to have to understand
it.

I think the income subjected to income tax is based on deductions, not
on the actual amount you pay (i.e. you could be paying more or less
social taxes, but the deductions would be fixed)

So - on a notional salary of 100,000 (note - this is just a round
number... not what I'm earning...)

Gross Salary = 100,000
20% reduction for social costs, leaves 80,000
10% reduction for costs of earning salary, leaves 72,000
Taxable salary = 72,000

Then income tax is applied (assuming 2004 rates)
0% on 4,334 = 0
6.83% up to 8,524 = 286
19.14% up to 15,004 = 1,240
28.26% up to 24,294 = 2,625
37.38% up to 39,529 = 5,695
42.62% up to 48,747 = 3,929
48.09% on the balance over 48,747 = 11,182

So total income tax = 24,958
Social, pension etc deduced at source (21%) = 21,000

Hence annual net pay (after income tax and social charges, which is
paid the year after)
= 54,042

So the net tax rate (for everything) is about 46%

Can anyone check my understanding, and confirm?

Cheers, Andy.

nitram wrote:

[]
It's worth paying a tax consultant to do it the first time.

Feh- I've never used an accountant!

I did my taxes so 'expertly' this year that I've ended up overpaying for
the second year in a row. Still, better than the other way around.

--
David Horne- www.davidhorne.net
usenet (at) davidhorne (dot) co (dot) uk

Any suggestions for a good tax consultant that covers the UK & France?

There's an excellent calculator on the French tax website which is,
from memory, something like impots.gouv.fr

The calculation depends also on your family size.

wrote in message
oups.com...
There's an excellent calculator on the French tax website which is,
from memory, something like impots.gouv.fr

The calculation depends also on your family size.


I was always told that size didn't matter.

Miss L. Toe wrote:
wrote in message
oups.com...

There's an excellent calculator on the French tax website which is,
from memory, something like impots.gouv.fr

The calculation depends also on your family size.



I was always told that size didn't matter.

You were lied to.

"emilia" wrote in message
...
Miss L. Toe wrote:
wrote in message
oups.com...

There's an excellent calculator on the French tax website which is,
from memory, something like impots.gouv.fr

The calculation depends also on your family size.



I was always told that size didn't matter.

You were lied to.


I found that out.




The hard way.

So... can anyone confirm or deny the above? Someone here must
understand french taxation...

A related question - on savings interest I think you have the option of
subjecting it all to the above social + income tax; or you can elect to
take a fixed rate 16% interest tax + 10% social tax.

This means the net tax on savings or un-earned income could be 27%.

Is this true?

Sounds more attractive than 40% in the UK...

Andy.

esandman:

So... can anyone confirm or deny the above? Someone here must understand french taxation...


The calculator I mentioned is he

http://www2.finances.gouv.fr/calcul_...ifie/index.htm

It's not all that difficult if you just need to consider salaries.

On 6/06/05 16:26, in article
,
" wrote:

esandman:

So... can anyone confirm or deny the above? Someone here must understand
french taxation...


The calculator I mentioned is he

http://www2.finances.gouv.fr/calcul_...ifie/index.htm

It's not all that difficult if you just need to consider salaries.


I just checked it out, I did not realize that French income taxes were
cheaper in the French Caribbean. On a small income, 25,000 the tax drops
from about 700 to 300 euros, on 50,000 a year, from 4700 to 3400. For
a married couple.

Obviously the situation becomes more complicated if one has other income
sources. I have an accountant do both my French and US returns, but
that is another issue. I never paid much attention to trying to figure it
out myself so I had not realized one get a special break in the "islands".

There is no indication they give a special deal for residents of French
Polynesia.



Earl