A guide to taxation in France

If you are a resident of France, you must pay taxes. Here is a quick, introductory guide to how the system works plus how to find more information.

You are subject to French income taxes, called impôts sur le revenu, if any of these conditions apply:
= if you arrive in France with the intention of living here permanently
= you hold a residence permit
= if you spend more than 183 days in the country during a calendar year
= if most of your wealth is based in France
= if your main professional activity is in France

Income taxes are calculated yearly according to your earnings from January 1 through December 31. You will be required to declare all your earnings from the moment of your arrival in France presuming your stay thereafter is uninterrupted before officially becoming a resident.

The amount of tax is calculated from the information you must supply in a form called la déclaration des revenus. As of 2006, the government implemented a new system called la déclaration des revenus pré-remplie, or a declaration that the government has already filled in on your behalf based on information supplied by your employer.

If you were resident here for the entire year and are a salaried employee, this form should be automatically sent to you by your local tax office, centre des impôts. Once you are recorded in the system, the déclaration will be sent automatically to your home. If you move, it is your responsibility to send the next déclaration to your new local tax office. You can also file it online.

If you became a resident mid-year, then check with your human resources department or contact your local tax office to check on the 2007 deadlines. (End Part -1, more later)

France and US bury the hatchet with Sarkozy November 2007

WASHINGTON (AFP) - Washington and Paris buried the hatchet Tuesday as US President George W. Bush warmly greeted his French counterpart at the White House, abandoning several years of strained relations over the Iraq war.
The pair toasted their new relationship at a black-tie dinner inside the White House as Bush welcomed President Nicolas Sarkozy by saying in French: "Bienvenue a la Maison Blanche."
Sarkozy, who arrived on his first official visit to Washington to a red-carpet welcome, said he came with a simple message: "To reconquer the heart of America in a lasting fashion."
The evening kicked off with the ritzy meal of Maine lobster bisque and Elysian farm lamb accompanied by Napa Valley wine, and was to be followed Wednesday by a rare address by a foreign leader to both houses of Congress.

In contrast to the last official US visit by a French president in 2001 -- when Jacques Chirac earned US consternation for hailing France as an antidote to American "hyperpower" -- Sarkozy quipped that one can "be a friend of America and win election in France!"
Elected in May, the leader often called "Sarko the American" is one of the most pro-US French leaders in decades and clearly aims to show Bush that France has turned a page on the past.
Even if the crisis over the 2003 US-led invasion of Iraq never led to a complete break in cross-Atlantic cooperation, relations have been notably cool for several years.
"France and the United States can meet great challenges when we work together, Mr. President," Bush told Sarkozy. "You and I share a commitment to deepen the cooperation of our two republics -- and through this cooperation, we can make the world a better place."
Sarkozy -- who frequently highlights "the historic friendship" between France and the United States even though such talk still rankles some of his countrymen who remain wary of all things American -- hailed US courage after the attacks of September 11, 2001.
"On 9/11 terrorists thought that they had brought, or they could bring America to its knees. And I will tell you that, seen from the French perspective, never has America seemed so great, so proud, so admirable as on 9/11."
The evening's entertainment featured a performance celebrating the 250th anniversary of the birth of the Marquis de Lafayette, the French soldier and diplomat who played a key role in the American Revolution and was a friend of the first US president, George Washington.
An Elysee spokesman said that during the visit Bush and Sarkozy would discuss "all the main international dossiers, whether regional crises or big strategic questions."
The two are in close agreement on many issues such as the Iran nuclear standoff, where Paris has given strong support for the US attempt to secure stronger sanctions.
Sarkozy, speaking earlier in the day to French and American business leaders, ruled out a nuclear-armed Iran but called for dialogue.
"The hypothesis of a nuclear weapon in the hands of the current leaders of Iran is for France inacceptable," he said. However, "one must remain open to dialogue, with a hand extended."
The French president also implied that the US and Chinese economic superpowers were unfairly benefiting from weak currencies.
"I will go to China and I will tell (authorities) they have such a spectacular success ... you don't need to have a currency so devalued to succeed," he said, referring to his scheduled visit on November 25-27.
On the US dollar, which hit another record low Tuesday against the euro, Sarkozy added: "A strong economy should have a strong currency. You don't need a dollar too weak; your technology, your know-how is enough."
The highlight of the visit is set for Wednesday, when Sarkozy is due to address Congress.
The occasion has been hailed as "a great honor" by the French, who recall how in 1824 the Senate and the House of Representatives held their first joint session to greet another Frenchman -- the Marquis de Lafayette, the nobleman and adventurer who played a key role in the American Revolution.
The last French president to address the two chambers of Congress was Sarkozy's predecessor, Chirac, in 1996.
Afterwards, Sarkozy will join Bush for talks at Mount Vernon, the historic residence of the first US president, George Washington.
Bush and Sarkozy met for the first time at the Group of Eight summit in Germany in June and shared a burger lunch during the French leader's American holidays in August.
That last meeting made headlines when Sarkozy's then-wife Cecilia snubbed the US president. The French president and his wife have since divorced.
AFP
Subject: French news

Ah, la fin de fumer!

Yes, come January, smoking will be banned in all restaurants and bars in France. In theory, the ban has been in effect since 1991...a ban except for specified “smoking” areas. Of course the majority of space in each establishment became the smoking area.

It looks like one of the last poignant characteristics of French life is finito. Come January you risk a 75 euro ($107.00 US) fine if you light up over your demi et cognac. This is the first hit. In recent years tobacco taxes have been jacked up 40 percent, bringing a packet to around five euros ($7.00 US), one of the highest on the continent.

“A world is collapsing,” writer Philippe Delerm wrote in a front-page ode to the cigarette in Le Monde newspaper, referring to the alluring image of the chain-smoking intellectual.

Whatever that look, it’s certain that French bars, impregnated with nicotine since Sartre hung out at Les Deux Magots, Giacometti littered Montparnasse with butts, and Gainsbourg’s grave was lined with Gitanes, are rapidly approaching the end of an epoch.

Nearly everyone it seems would like to quit smoking, what has been accepted over the years as a natural element in French life. With the elimination of the smell and stained interiors, the dingy walls and human odors will be questionable replacements.

Is Le Parfum de Cigarettes Air Spray in the works?

The European Central Bank Poised to Abandon Interest Rate Increase

Sarkozy wins fight with European Central Bank as ECB ditches interest rate rise.

The European Central Bank is poised to abandon a rate rise planned for early September, bowing to intense pressure from French politicians and a growing chorus of economists across Europe.

The policies of the European Central Bank (ECB) have been under fire by French President Nicolas Sarkozy. He particularly criticized the ECB's interest rate policy, saying the bank has deliberately let the euro rise relative to the dollar. The simultaneous injection of liquidity into the markets was criticized in particular, since it saves speculators but does not help business by lowering interest rates. Pres. Sarkozy realizes what a negative impact would have on the French economy. As Sarkozy put it, the ECB policies mean that, as far as the French are concerned, "We sink."

“We sink” refers to the measures necessary In order to achieve his goal, he needs lower interest rates to facilitate entrepreneurial activity as well as general business expansion -- and he needs a cheaper euro to facilitate French exports.

Sarkozy wants to lower interest rates and a cheaper euro. Unlike France, Germany is primarily concerned about inflation, particularly in the face of soaring energy prices.

The ECB serves multiple sovereign countries, many of which have divergent interests and desires and therefore need different monetary policies from the central bank. The questions, therefore, are simple. How do you have multiple sovereign states within a single central bank? How do you reconcile national sovereignty with a multinational monetary system when it is impossible to create a single monetary policy that satisfies the policies of multiple sovereign nations? Someone must always be hurt. What is of great significance is that Sarkozy has made it clear that it is France, one of Europe's founders, that is being hurt -- to the benefit of its partner, Germany.

The irreconcilable problem is a single currency. It would have been simpler had there not been a euro. The structure of the European Union cannot easily support the policy changes that Sarkozy feels he must implement in order to maintain the French economy and French competitiveness. The ECB must harmonize its policies, but it is not clear how it can harmonize the diverging policies and interests of Germany and France.

9/03/07: The euro ended its recent rally, falling to $1.3638 against the dollar.

President Zarkosy plans leadership of Europe.

PARIS: President Nicolas Sarkozy of France strode into the Napoleon III salon of the Élysée Palace and staked his claim to the leadership of Europe.

It’s so refreshing to have an old allie’s return. Putting up with his predecessor was stifling, realizing that the general French population continued to exist under a regressive socialist govt. under the command of an old president wedged in era long gone.

Pres. Sarkozy made his position clear:

"I can't be criticized for wanting first place for France," Sarkozy said in an interview with The New York Times and the International Herald Tribune, his first with English-language news organizations since becoming president last May. He added, "If France doesn't take the lead, who will?"

"I want to tell the American people that the French people are their friends," he said. "We are not simply allies. We are friends. I am proud of being a friend of the Americans. You know, I am saying this to The New York Times, but I have said it to the French, which takes a little more courage and is a little more difficult. I have never concealed my admiration for American dynamism, for the fluidity of American society, for its ability to raise people of different identities to the very highest levels."

Feel welcome to read the speech in its entirety.

Fabulous French Cuisine, Fabulous American Food

Any French restaurant with a star is a revelation. Anything less would make some of the average restaurants in the US look pretty special ...New England seafood, South West Mexican, Louisiana Creole and ......North Carolina barbeque, South Carolina shrimp. And the price is hard to argue with. I’m surprised there aren’t more Restaurants Américain popping up in France where ExPats hang out.

One item in day-to-day French restaurants that reminds me of certain restaurants in the US—in particular Italian Restaurants in San Francisco—is the over cooked spinach. Spinach is cooked to mush, and is always le végétarien du jour. With the exception of North Beach Restaurant, this is the San Francisco North Beach one and only vegetable. When I found it popping up in
restaurants moyens (average restaurants) in France, I felt kind of let down.

So if hand shaped carrots in a 2-star restaurant are for you, go for it. And make sure your credit card has plenty of room.

Of course the three food items the French excel in are bread, wine and cheese, and they’re considerably less expensive than hand shaped carrots.

Bon appétit

CAN YOU BELIEVE, “St. GREENSPAN” DIDN’T KNOW?

Even Alan Greenspan didn’t realize the danger to the nation’s economy as a result of faulty mortgage loans. As Chairman of the Federal Reserve, wouldn’t mortgage fall under his watch? His explanation is in “Fed Speak,” as are all communications from the Federal Reserve.

As I understand it, the idea behind the Federal Reserve is to keep things running smoothly, so banks that are members of the Fed are federally insured, which should be reassuring to depositors. It seems that there were fraudulent practices that were swept under the rug: the Feds ignored, lenders denied, and borrowers are hung out to dry with.

So now we discover that Alan Greenspan wasn’t the financial genius he was thought to be,or he was asleep at the switch? His explanation: "It’s difficult for regulators to control." And unfortunately it seems his replacement is proving no more helpful controlling the mortgage loan business than he was.

As home buyers and sellers ponder what to do next in today's volatile real estate and money markets, the conflicting opinions of industry professionals may not offer much help. Greed, the original raison d'être, continues to triumph.

A number of loan programs, once widely available, have disappeared, or now require larger down payments, higher credit scores and more thorough income and asset documentation. Some people have found the original loan they qualified for no longer exists.

Credit tightening at the jumbo end of the market, means agents are having to learn "different ways of putting deals together." Deals that include sellers paying points to buy down the buyer's interest rate, making deals contingent on buyers first selling their homes, or even more modest incentives such as paying off homeowner association fees.

It looks like the borrowers and their lenders are proving more creative than the Feds when creating a means of dealing with this conundrum.