Q&a: do i have to register for tax?

Q&a: do i have to register for tax?


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ALL TAXPAYERS HAVE TO MAKE AN INCOME TAX DECLARATION, EVEN IF THE INCOME EARNED IN THE YEAR IS NIL I HAVE JUST OFFICIALLY MOVED TO FRANCE ALTHOUGH I HAVE BEEN MAKING TRIPS HERE DURING THE


PAST FEW MONTHS AND SET UP A FRENCH BANK ACCOUNT DURING THIS PERIOD. I HAVE PUT ENOUGH MONEY IN MY FRENCH ACCOUNT TO LAST FOR A FEW MONTHS AS I WILL NOT BE WORKING FOR A WHILE. I HAVE BEEN


TOLD THAT I WILL NOT PAY TAX ON THIS BY THE BANK MANAGER BUT WILL BE TAXED ON THE MONEY LEFT FROM THE SALE OF MY HOUSE IN THE UK (TOLD THIS BY UK TAX DEPARTMENT). ALTHOUGH I WILL NOT BE


DOING ANY PAID WORK FOR A WHILE I COULD BE DOING VOLUNTARY WORK TO HELP LEARN THE LANGUAGE, SO DO I STILL HAVE TO DECLARE MYSELF TO THE TAX AUTHORITIES IN FRANCE? I AM STAYING WITH A FRIEND


FOR THE TIME BEING SO WILL NOT BEING PAYING ANY HOUSE TAXES. _Our personal finance expert Hugh MacDonald writes:_ All taxpayers have to make an income tax declaration, even if the income


earned in the year is nil. But note that it is all income, worldwide, that needs to be declared, not just that which is earned in France. Also, for the sake of clarity, please note that it


is income that is assessable, irrespective of where in the world the income arises. Consequently, if you have transferred capital to France on which to live, and this capital is banked in an


interest-bearing account, then you will have to declare this income on the tax return next May. However, this does not automatically mean that you will have to pay tax as the amount of


interest earned may be below the taxable threshold. However, there will be a liability to French social charges at 12.1%, since social charges have no allowances, rebates, reliefs,


reductions or anything. Likewise, the remaining capital from where this amount was transferred is presumably also in an interest-bearing account, and the income arising on this capital will


also need to be declared in France.