TLDR: If you are a tax resident in France, you must declare all foreign income, including salaries, in your annual tax return. Inpatriate employees may benefit from partial exemptions, while foreign employers are subject to withholding tax. Use your tax number to file online and keep supporting documentation.
Who Must Declare Foreign Income
If you are a tax resident in France, you must declare all foreign-sourced income, including salaries, in the annual form 2042. This obligation applies to both long-term residents and those who transfer their tax domicile to France during the year. Inpatriate employees may qualify for partial exemptions on remuneration linked to work performed abroad, provided the activity is exclusively in the company's interest and the employer submits a certificate detailing the reference salary calculation method.
Tax Number and Access to the Declaration
To file your tax return online, you need a numéro fiscal de particulier, available on impots.gouv.fr. French tax residents automatically receive this number, while non-residents with French-sourced income must request it from the Service des Impôts des Non-Résidents (SINR).
Declaration Procedure: Online or Paper
Foreign income can be declared online or on paper. Paper filing is only possible upon explicit request to the tax authorities. In such cases, any additional information must be attached on a "papier libre" (plain sheet) to form 2042.
Required Documents for the Declaration
To correctly declare foreign salaries, you must provide:
- Proof of currency conversion for income in foreign currency.
- Supporting documentation for exemptions, such as the employer’s certificate for inpatriate employees.
Deadlines and Corrections to the Declaration
The deadline for filing the tax return is generally between May and June of the year following the income year. Corrections can be made before the statute of limitations expires via an online amended return or by sending a letter with supporting documents to the relevant tax office.
Errors, Exceptions, and Limits
Foreign income is taxed in France only if not covered by international double taxation treaties. Under such agreements, income may be exempt or taxed only in the country of origin.